Protecting against vulnerability of stock markets

Reducing vulnerability of stock markets

Description

Protecting against vulnerability of stock markets involves implementing regulatory safeguards, risk management protocols, and market surveillance to prevent manipulation, excessive volatility, and systemic failures. Essential actions include enforcing transparency, setting circuit breakers, promoting diversification, and ensuring robust disclosure requirements. These measures aim to stabilize markets, protect investors, and maintain confidence by mitigating the impact of economic shocks, speculative bubbles, and fraudulent activities, thereby reducing the risk of widespread financial disruption.