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Posted on 14 April 2012 | 2,598 views

Apple Stock Flash Crash Forced Circuit Breaker Halt

When Apple stock took a surprising 9 percent plunge on Friday March 23, 2012 in what is known as a flash crash, the sudden drive appears to be unintentional human error but the result was Apple implementing the circuit breaker rule to avoid sudden market volatility.

Shares of Apple stock, which is known as the world’s most valuable company, dropped a whopping 9 percent in a single trade on that day.

The sudden plunge was likely the result of human error … it looks like a fat finger mistake.

Nine minutes before the unexpected market trade took place, BATS sent out an alert stating, “Please be advised that BATS is currently investigating system issues trading in symbols ranging A through BF.”

The Circuit Breaker Rule was Enforced on Apple Stock to Avoid Market Volatility

Shortly after the Apple Flash Crash, Apple stock was halted by the single stock circuit breaker rule to avoid a free-fall. Market circuit breakers occur when a major stock or commodities exchange stops trading temporarily because an index, or in some cases an individual stock, has fallen a certain percentage during a trading day.

Apple resumed trading shortly thereafter and was able to recover all the loss.

The sudden Apple stock crash comes only days after the company announced it would start dishing out Apple dividends to its shareholders at $2.65 per share.

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