Market Disruption
A situation where markets cease to function in a regular manner, typically characterized by rapid and large market declines. Market disruptions can result from both physical threats to the stock exchange or unusual trading (as in a crash). In either case, the disruption creates widespread panic and results in disorderly market conditions. Investopedia Says:
Following the 1987 market crash, systems were put in place to minimize the risks associated with market disruptions, including circuit breakers and price limits. These systems are designed to halt trading in rapidly declining markets to avoid panic conditions. Related Terms:
Black Monday
Black Thursday
Bubble
Correction
Crash
Kondratiev Wave
Market Distortion
Panic Selling
Soft Market
Volatility |