The September 11th attack
SEC eases trading rules
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Chart: The Dow's performance following historic events
Advertiser News Services
Federal regulators, cognizant of investors' anxiety awaiting the market to reopen, announced steps late last week aimed at stabilizing the market.
The Securities and Exchange Commission, trying to ensure that trading will be as orderly as possible, said Friday it was relaxing some trading rules to make it easier for companies to buy back their own shares.
When firms repurchase stock — which many did after the 1987 crash — investors are often reassured, believing that the nation's companies are expressing confidence in themselves, the market and the economy.
Some companies have already announced plans to buy back their stock, including Cisco Systems, which said Thursday it will repurchase up to $3 billion worth during the next two years.
Analysts also point out that the market has other safeguards to keep it from falling too sharply, such as the circuit breakers that halt trading after the Dow Jones industrials fall 850 points, 1,750 points and 2,600 points.
Also late last week, some of the largest U.S. pension funds said they will buy stocks if they decline "precipitously" after markets open.
Many investors say the market may decline 5 percent to 10 percent at the open.
The SEC has set up a telephone hot line to help answer individual investors' questions and address trading-related complaints: (800)732-0330.
