Distinguish between Price Ceiling and Price Floor in securitie | LiveTrade LTD Official Channel

Distinguish between Price Ceiling and Price Floor in securities

On the electronic price list, there are two types of price control mechanisms, namely in price ceiling and price floor, which every investor should be aware of before playing the stock market.

Thorough understanding of these terms will help investors to make accurate purchase/selling decisions and avoid risks.

The purpose of price ceiling and price floor is to ensure that the stock market is not manipulated by any “alpha sharks” or influential investors because the stock price will only reach a certain level without increasing or decreasing further.

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