Circuit Breaker

Trading Basics

Circuit Breakers

When exchanges stop the trading in a security that has fallen significantly.

This is done to stop an uncontrollable panic.

Other Trading Basics

Commercial Paper

How big companies finance short-term cash flow.

Like bonds but without the coupon, instead, the APR is determined by the discount the agreements are entered into and the length of time to repayment.

For example, a blue chip company might borrow $9.95m dollars today and repay $10m in a month’s time.

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