- A term used in investing to signify when trading curbs are active. Curbs are temporary limitations or restrictions on the trade of a particular security. Curbs in means that these restrictions are in place, so trading has been suspended.
Trading curbs are usually used to reduce the sudden movement of a security's price. This is done to reduce the volatility of the market. Some people believe that curbs actually increase uncertainty and limit the ability of the market to reach an equilibrium price. Taking curbs out, they think, would allow the price to fall or rise to a market-determined level.
Investment dictionary. Academic. 2012.
Look at other dictionaries:
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