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Price Limit: Effects, Dimensions and Analysis
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Abstract: (10697 Views) |
| One of the most important tasks of the supervisory bodies of capital market is to control fluctuations and volatilities using various tools and rules. In order to implement instruments, we should study about effects, and dimensions as well as advantages and disadvantages totally, these instruments are so-called "Circuit Breaker". In this article, we explore one of the most important tools ie price limit used in the Tehran Stock Exchange and we analyze it extensively. Now, many exchanges in the world use price limit for reducing volatility in markets. Price limit is the ceiling and floor of any share on each trading day. A lot of research is done on the effects, advantages and disadvantages that in this paper we review these issues and explore one of the newest and most important of them called "magnet effect" using a regression model. |
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| Keywords: Circuit Breakers, Price Limit, Magnet Effect, Market Volatility. |
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Full-Text [PDF 341 kb]
(21912 Downloads)
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Type of Study: Research |
Subject:
Special
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