Series 7 - General Securities Representative Exam

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If at any time during a single trading session, the S&P 500 Index is down 20% of the closing price for the previous day, which of the following occurs?

Trading is halted on all US stock exchanges for the remainder of the trading day
A
Trading is halted on all US stock exchanges for 15 minutes
B
Trading is halted on all US stock exchanges for 60 minutes
C
Trading is halted on all US stock exchanges for 30 minutes and then resumes with another 5% downside limit before the next halt
D
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Explanations

If the S&P 500 index drops 20% intraday, trading is halted on all US stock exchanges for the remainder of the trading day. This is a level 3 halt. Level 1 halt is 7%, Level 2 halt is 13%.

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