Listen to a Business English Dialogue About Restricted level
Willow: Hi Lydia, have you ever dealt with restricted levels in investments?
Lydia: Hi Willow, yes, restricted levels are limits imposed on certain securities to prevent excessive trading.
Willow: Exactly. They are often applied to stocks with low liquidity or high volatility to protect investors from sudden price fluctuations.
Lydia: Right. Restricted levels help maintain stability in the market by preventing rapid price changes caused by large trades.
Willow: That’s correct. They’re like safety measures to ensure orderly trading and protect both investors and the market as a whole.
Lydia: Absolutely. Investors need to be aware of these restrictions when trading in such securities to avoid unexpected limitations.
Willow: Indeed. Understanding restricted levels is crucial for investors to make informed decisions and manage their risk effectively.
Lydia: Definitely. It’s essential to consider these restrictions when planning investment strategies and executing trades.