Trading Curb

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Trading Curb

On an exchange, a measure designed to prevent panic selling by stopping trading after a security or an index has fallen by a certain amount. For example, if the Dow Jones Industrial Average falls 10% in a trading day, the New York Stock Exchange institutes a trading curb that suspends trade for at least one hour. A trading curb is intended to allow investors to determine whether a situation is really as bad as it looks. It is sometimes called a collar or a circuit breaker. See also: Suspended trading.
References in periodicals archive ?
The exchange ratio is fixed, subject to a trading collar.
The merger agreement includes a trading collar that allows TriCo to terminate the merger agreement if the weighted average price of TriCo common stock, determined in accordance with the merger agreement, exceeds USD 49.
The trading collar was still in place at the close.
The exchange ratio is fixed, subject to a trading collar and totally, FNB shareholders will own about 24% of the common stock of the combined company once the transaction is complete.