Rambus stock halted six times in frenetic trade

Rambus stock halted six times in frenetic trade

Stock Market Predictions

NEW YORK (Global Markets) - Trading in Rambus Inc (RMBS.O) was halted six times on Friday as the stock hit circuit breakers after rapidly rising and then falling through the 10 percent threshold in a matter of minutes.

A federal appeals court on Thursday ruled that Rambus did inappropriately destroy documents related to patent cases, but it overturned a lower court's dismissal sanction. Rambus shares fell as much as 20 percent. The shares previously had risen more than 10 percent.

Rambus shares were down 16.5 percent at $16.08 in early afternoon trading. At nearly 7 million shares volume was over eight times the daily average.

Circuit breakers were introduced after the financial crisis as a way to reduce volatility. Critics say they prevent a stock from going through necessary price adjustments when important news breaks. Such a large number of halts in Rambus stock is likely to reignite that debate.

(Editing by Leslie Adler)