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22 January, 22:20

The purpose of the SEC's circuit breakers rule is to: a. allow floor traders to specialize in trading the securities of specific industries. b. halt trading for a short time following a dramatic drop in stock prices. c. prevent market disruption caused by a communication malfunction. d. prevent individuals from profiting from information not available to the general public.

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  1. 22 January, 23:54
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    The correct answer is letter "B": halt trading for a short time following a dramatic drop in stock prices.

    Explanation:

    A Circuit Breaker is a measure taken during large stock exchange sell-offs to avoid panic selling. They usually involve a trading pause or the establishment of restrictions when an index falls by a certain percentage. They give investors a chance to calm down and evaluate their options.
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