From February 1997 till December 2002 the EGX had a tight symmetric 5 percent price limit
on all firms in the stock market, which is as tight as any limit imposed anywhere at that period.
Since the rates of price limit
vary according to price levels as seen in Table 1, the price limit
system of the JSE provides a rare opportunity for examining the relationship between price limits
and stock price volatility.
The price limits
set by the Secretaries of State in 1989 envisaged an increase in the average annual household bill of [pounds]43 in today's prices.
Moser (1990) identifies three types of circuit breakers, one of which he names price limit
After significant discussion with customers, representative trade groups and the CFTC, we believe increasing daily price limits
will result in less-frequent limit moves and will help ensure that our markets provide the most effective means for price discovery and risk management markets.
First, related to price limit
literature (3), Tooma (2006) shows that circuit breaker mechanisms like price limits
attract (4) stock prices toward the bounded limits because traders advance their trades in anticipation of failing to execute when limits are hit.
Two other water companies have also been given permission to increase their price limits
- South West Water and Bournemouth and West Hampshire.
Traders willing to trade may be unable to do so because the true price lies outside the price limit
in effect on that day.
These changes supercede the recent changes to the daily price limits
for CBOT Wheat contracts and cap the maximum daily price limit
, after two expansions, at $1.
Borrowers who meet CalHFA limits on income may be eligible for the below-market rate loans as long as the home they are purchasing falls at or under the sales price limit
for the county.
Harmonized Price Limit
Expansions, Contractions Introduced
For example, in Los Angeles County the purchase price limit
is now $549,601 for a new house and $671,735 for one in a targeted census tract, 22 percent higher than the year-ago level.
said it has boosted the sales price limit
an average of 20 percent over the past year on homes that can be financed through a below-market-rate loan program.
In the five years from 2000 to 2004, the daily range of the natural gas futures market exceeded 50 cents 40 times and 75 cents 20 times and never hit the price limit
, Chapman said.
The price limit
increases are necessary to align the company's Wheat contract price limits
with those of the Minneapolis Grain Exchange and Kansas City Board of Trade.