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A comment on Trading halted as U.S. stocks plummet. Parent comment

Re:Trading halted as U.S. stocks plummet by rwmj on Monday March 09, 2020 @02:20PM (#22528038)
> Mass sell offs tend to create unorderly markets, which is not beneficial for anyone.

It's beneficial for people who want to buy stocks cheaply or if we truly believe that markets are about price discovery.

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Re:Trading halted as U.S. stocks plummet by HolyLampshade on Monday March 09, 2020 @02:27PM (#22528129)
> markets are about price discovery

Exactly, and when you have an unorderly market, price discovery becomes problematic.

It’s the same reason the single stock LULD bands exist (which put the brakes on both rapid downward and rapid upward movement). Stopping for 15 minutes (or 5 in the case of a LULD pause) is not detrimental to the process of establishing orderly price discovery.

In the event a stock is going to keep rising or falling due to legitimate changes in valuation it will continue to do so (look at NASDAQ’s halts page today to see stocks that have hit their bands multiple times).

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Re:Trading halted as U.S. stocks plummet by leetcrew on Monday March 09, 2020 @03:12PM (#22528653)
> we truly believe that markets are about price discovery.

this is not incompatible with the believe that prices over a single day (or hour) can be dangerously noisy.

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Re:Trading halted as U.S. stocks plummet by jrockway on Monday March 09, 2020 @02:31PM (#22528186)
> if we truly believe that markets are about price discovery

I think you can discover the price tomorrow.

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