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Message: <blockquote data-quote="sherlock" data-source="post: 10664269" data-attributes="member: 106046">Price Bands<img src="/styles/default/xenforo/smilies/default/rofl.gif"  class="smilie" loading="lazy" alt=":rofl:" title="ROFL    :rofl:" data-shortname=":rofl:" />When a share price moves by a large amount in one day, for eg: like Share X did (around 55%) the SEC imposes a rule called a price band on that counter.Assume share X closes on 20.00 on Monday. The price band is applied until Friday. Then on Tuesday, the price will have to be between 18.00 and 22.00 which is + or - 10%. Then if it closes at 22.00 on Tuesday, it can only trade between + or - 10% of 22.00 which is the last traded price on Monday, and so on until the band is removed on Friday.So when a price band is imposed it can only come down a maximum of 10% which gives a certain level of security to the investors who bought it once it appreciated.</blockquote>

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