Magnet effect of price limits: evidence from Bursa Malaysia

• Main Authors: Mohammad Sifat, Imtiaz, Mohamad, Azhar
• Format: Conference or Workshop Item
• Language: English; English
• Published: 2017
• Subjects: HG Finance; HG4501 Stocks, investment, speculation
• Online Access: http://irep.iium.edu.my/59710/1/Osaka%20Dec%202017%20paper%20-%20magnet%20effect.pdf; http://irep.iium.edu.my/59710/2/Osaka%20Dec%202017%20acceptance.pdf; http://irep.iium.edu.my/59710/; http://worldbizconference.com/
• Institution: Universiti Islam Antarabangsa Malaysia

Since the late 1980s it has become a common practice worldwide—especially in frontier markets—to impose price limits on stock prices, effectively stunting its intraday growth or decline beyond a certain bracket. Ostensibly, its purport is to prevent investor overreaction, regulatory control of marke...