Economy, asked by Anonymous, 8 months ago

In what ways has the COVID-19 Pandemic affected the global stock market .
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Answers

Answered by rashmijhanva123
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The stock market has responded to the COVID-19 pandemic with worrying volatility, as traders have panic-sold out of fear.

As a result of the recent turmoil, the market-wide circuit-breakers that attempt to prevent panic-trading, have been triggered four times alone in March.

The market has reacted to recent unpredictability with large drops, triggering a market wide circuit breaker four times in March. The safeguard pauses trading for 15 minutes in hopes the market will calm.

The U.S. Securities and Exchange Commission mandated the creation of market-wide circuit-breakers to prevent a repeat of the Oct. 19, 1987 market crash, in which the Dow plunged 22.6%. Since then, they have only been triggered once in 1997 before the four times this March.

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