Upper circuit & Lower circuit

[Durai007]

Hi Friends,

I heard something called Upper circuit and lower circuit.

I wanted to know what does it means.

Could anyone explain me this concept with easily understandable example.

Thanks in Advance,
Durai007

 

[hayerpa]

upper circuit means max price at which any share is purchased in a trading day after that no one can purchase that stock in that particular day i think for NSE it is 20% and for BSE is 10% further lower circuit is minimum share price that is dropped in a trading day and when any stock reaches that limit stock goes on hold for that particular day i.e price does not drop below that point

 

[rvm123]

upper limit (circuit) is the maximum price at which a particular share can quote for buying / selling. Lower limit (circuit) is the minimum price at which a particular share can quote for buying / selling. If a scrip has quoted Rs.100/- at the end of 8.9.11, and the circuit limit is 5%, on 9.9.11, the scrip can be traded between Rs.95/- to Rs.105/- only. That is + 5% and -5%. The percentage will be decided by Stock Exchange. % may be different for each scrip.