5 ms·

Why do they do this? Isn't the whole point of the free market that the prices stabilize quickly without interventions?

by baltcode 14y ago

guyzero 14y ago
Yeah, everyone loved the free market back in 1929.
- bcoates 14y ago
  The 1929 stock market collapse was an accurate reflection of real-world economic conditions, it wasn't a panic crash and it didn't cause the great depression. There are a ton of theories about why the depression happened but pretty much none of them claim fiddling with the stock market rules would have helped anything. Stock prices during the depression were reasonable, they were just news nobody wanted to hear.
  - jivatmanx 14y ago
    Economists also think that WWII ended the depression. As if flattening the major cities of every developed country except the U.S. and spending the majority of the world's economic activity on objects whose sole purpose is to destroy and be destroyed. That brought prosperity.
    - polymatter 14y ago
      well, relative prosperity.
    - icebraining 14y ago
      Some do, others don't: http://www.econtalk.org/archives/2008/12/higgs_on_the_gr.html http://www.econtalk.org/archives/2008/12/higgs_on_the_gr.htm...
waterlesscloud 14y ago
Google requested to halt so they could finish the report. The early released version is not 100% finished.
jonknee 14y ago
Because the market is "stabilizing" on possibly inaccurate information that was not meant for release. It goes into securities fraud pretty quickly if you knowingly put out incorrect financials and allow trading.
shiftpgdn 14y ago
Because the price fell dramatically from a release of information that wasn't from Google. Until its confirmed by Google it's just speculative which NASDAQ doesn't want. Source: http://www.nasdaqtrader.com/Trader.aspx?id=TradeHaltCodes http://www.nasdaqtrader.com/Trader.aspx?id=TradeHaltCodes
smackfu 14y ago
Normally earnings are released when the markets are closed, so this doesn't seem so unusual.
forgotusername 14y ago
Free markets are not immune to panic.. a few hours break in trading that affects everyone is fair, and allows participants time to analyse whatever news release occurred, rather than knee-jerk liquidization of their positions, which they may come to regret after cooling off. This one was automated AFAIK, since GOOG dropped so hard. See http://en.wikipedia.org/wiki/Trading_curb http://en.wikipedia.org/wiki/Trading_curb

Why do they do this? Isn't the whole point of the free market that the prices stabilize quickly without interventions?

guyzero 14y ago

Yeah, everyone loved the free market back in 1929.

bcoates 14y ago
The 1929 stock market collapse was an accurate reflection of real-world economic conditions, it wasn't a panic crash and it didn't cause the great depression. There are a ton of theories about why the depression happened but pretty much none of them claim fiddling with the stock market rules would have helped anything. Stock prices during the depression were reasonable, they were just news nobody wanted to hear.
- jivatmanx 14y ago
  Economists also think that WWII ended the depression. As if flattening the major cities of every developed country except the U.S. and spending the majority of the world's economic activity on objects whose sole purpose is to destroy and be destroyed. That brought prosperity.
  - polymatter 14y ago
    well, relative prosperity.
  - icebraining 14y ago
    Some do, others don't: http://www.econtalk.org/archives/2008/12/higgs_on_the_gr.html http://www.econtalk.org/archives/2008/12/higgs_on_the_gr.htm...

waterlesscloud 14y ago

Google requested to halt so they could finish the report. The early released version is not 100% finished.

jonknee 14y ago

Because the market is "stabilizing" on possibly inaccurate information that was not meant for release. It goes into securities fraud pretty quickly if you knowingly put out incorrect financials and allow trading.

shiftpgdn 14y ago

Because the price fell dramatically from a release of information that wasn't from Google. Until its confirmed by Google it's just speculative which NASDAQ doesn't want. Source: http://www.nasdaqtrader.com/Trader.aspx?id=TradeHaltCodes http://www.nasdaqtrader.com/Trader.aspx?id=TradeHaltCodes

smackfu 14y ago

Normally earnings are released when the markets are closed, so this doesn't seem so unusual.

forgotusername 14y ago

Free markets are not immune to panic.. a few hours break in trading that affects everyone is fair, and allows participants time to analyse whatever news release occurred, rather than knee-jerk liquidization of their positions, which they may come to regret after cooling off. This one was automated AFAIK, since GOOG dropped so hard. See http://en.wikipedia.org/wiki/Trading_curb http://en.wikipedia.org/wiki/Trading_curb