Last Thursday afternoon wasn’t a good day for shareholders of Procter and Gamble, Accenture and 3M. The three said companies’ shares tumbled and the stocks fell below the circuit-breaker level of what is called the ‘Liquidty Replenishment Point’.
Under a Liquidity Replenishment Point, the designated market makers on the NYSE floor are given an opportunity to come in on the other side of an order at a price they have time to think about. Procter and Gamble had a sell over when its stocks fell by 37%.
PP&G and 3M are major contributors to the Dow Jones Industrial Average. When their stocks fell greatly last Thursday afternoon, the Dow’s levels fell sharply as an effect which fueled fears among investors.
The Dow closed down 348 points, or 3.2%, at 10519.79, but at its intraday low, the measure fell as low at 9869.62. P&G’s shares closed down $1.41, or 2.3%, at $60.75. 3M closed down $2.35, or 2.7%, at $84.24.