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🏠 Home › MCQs › Pakistan Current Affairs › Question

What is the primary function of a stock market circuit breaker during periods of extreme volatility?

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By Zain

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Published 09 Mar 2026

A. To permanently halt the trading of speculative stocks

B. To provide a cooling-off period to curb panic selling

C. To allow the government to fix stock prices manually

D. To ensure that all sell orders are executed at par value

💡 Explanation:

Circuit breakers are regulatory tools used by stock exchanges to temporarily halt trading when prices hit pre-defined levels, preventing panic-driven volatility and allowing markets to absorb information.

📚 Topics: Pakistan Current Affairs

🎯 Exams: CSS GEN NTS PMS UK_CS US_COMP

🏷️ Tags: Capital Markets Economic Governance Financial Regulation

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