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Groupon shares slide, hit circuit breaker

Updated: October 27, 2012 6:18AM

Shares of daily deal site Groupon plunged 7.21 percent, or 37 cents, on Tuesday, tripping a circuit breaker rule that protects stocks from being manipulated by short sellers.

Short sellers make money when a stock price goes down. The Nasdaq rule restricts prices at which a stock can be sold short.

Groupon’s stock, which had fallen as much as 10 percent earlier in the day Tuesday, closed at $4.82 a share.

The company’s stock has swung up and down as analysts weigh its efforts to diversify from the highly competitive and marketing-dependent daily deal strategy. The stock is down 76 percent from its public-offering debut price.

Groupon declined comment.

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