FAT CATS

[lady*b]

regarding 80B- Posted by: lady*b
In reply to: JJSeabrook who wrote msg# 120693 Date:2/27/2007 3:36:39 PM
Post #of 120817

here is the formal breakdown of 80B:

When there is extraordinary market volatility, Rule 80-B takes effect when the Dow Jones Industrial Average (DJIA) drops a predetermined value below its closing value of the previous trading day. Trading in stocks will halt on the NYSE, AMEX, Regional exchanges and NASDAQ for a set amount of time based on the amount of the decline.

A 10 percent drop (Level 1) in the DJIA will halt trading for:
1 hour if the decline occurs before 2:00 p.m. Eastern Time (ET)
30 minutes if the decline occurs between 2:00 p.m. and 2:30 p.m.(ET)
No halt if the decline occurs after 2:30 p.m. (ET)

A 20 percent drop (level 2) in the DJIA will halt trading for:
2 hours if the decline occurs before 1:00 p.m. Eastern Time (ET)
1 hour if the decline occurs between 1:00 p.m. and 2:00 p.m. (ET)
Closed for the remainder of the day if the decline occurs after 2:00 p.m. (ET)

A 30 percent drop (Level 3) in the DJIA, at any time, will result in the market closing for the remainder of the day.

*The point levels will be reset quarterly at 10, 20, and 30 percent of the DJIA by using the DJIA average closing values of the previous month, rounded to the nearest 50 points. Point levels will be adjusted on Jan. 1, April 1, July 1 and Oct. 1. For the exact point levels, please feel free to contact a Schwab representative at 800-435-4000.
http://www.schwab.com/public/schwab/home/get_started/new_investing/glossary/glossary_j_r.html?cmsid=....