Suspended trading

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Suspended trading

Temporary halt in trading in a particular security, in advance of a major news announcement or to correct an imbalance of orders to buy and sell.

Suspended Trading

A situation in which trading on a security is halted, usually for about half an hour, but sometimes longer, by the exchange's management or by regulators. Trading on a security is suspended usually in order to discourage volatility. For example, suspended trading may occur for the period immediately around a major announcement by the company's management that may cause the price to unsustainably rise or fall. Likewise, the SEC may suspend trading on a security if it is thought to be engaged in illegal activities.

suspended trading

The temporary suspension of trading in a security. Trading in a security may be suspended if, for instance, a major announcement by the issuing company is expected to influence significantly the security's price. The temporary halt in trading is intended to give the financial community enough time to hear the news. Also called trading halt.

Suspended trading.

Suspended trading means that an exchange has temporarily stopped trading in a particular stock or other security.

Trading is typically halted either because an important piece of information about the issuing company is about to be released or because there's a serious imbalance between buy and sell orders, often triggered by speculation.

In the case of an expected announcement, the affected company generally notifies the exchange that the news is imminent. The suspension, or trading halt, provides time for the marketplace to absorb the announcement, good or bad, and helps reduce volatility in the stock price.

Examples of news that could cause a suspension are a poorer than expected earnings report, a major innovation or discovery, a merger, or significant legal problems. The Securities and Exchange Commission (SEC) can also suspend trading in the stock of a company it suspects of misleading or illegal activity.

References in periodicals archive ?
New York: The Nasdaq Stock Market will suspend trading of Velocity Shares Daily Inverse VIX Short Term ETNs on February 15, 2018, Credit Suisse AG announced.
These adjustments did not prove enough to stem outflows and we have steadily seen large funds suspend trading to protect their portfolios.
The decision to suspend trading - Aviva "cannot accept instructions to buy, sell, transfer or switch units in the Trust until further notice" - came into effect at noon on Monday and was "made to safeguard the interests of existing investors.
NASDAQ: CACG) (NASDAQ: CACGW) (NASDAQ: CACGU) said it has been notified that The NASDAQ Stock Market LLC intends to delist the company's securities, and suspend trading on the exchange for non-compliance with minimum shareholder requirements.
Summary: DHAKA - Bangladesh shares ended sharply higher on Tuesday, a day after a steep plunge forced the bourse to suspend trading and sparked violent street protests by angry investors which were broken up by the police.
Indonesia's benchmark stock index plunged more than 10 percent Wednesday due to panic over the possibility of global financial crisis, forcing authority to suspend trading.
Birmingham Post columnist Peter Starkey said most companies would suspend trading in the circumstances to fend off any further allegations and ensure no one could take financial advantage of the situation.
After initially postponing a meeting at which they planned to review a $500 million bid from freight and logistics company VarigLog due to reported changes in the offer, Varig creditors late Monday decided to reject the bid, forcing the Sao Paulo stock exchange to suspend trading in Varig stock briefly after a rush to sell, according to press reports, and leaving Brazil's flag carrier on the cusp of liquidation.
Likewise, they should review their authority to suspend trading or settlement activity and consider in advance the costs and benefits of such measures.
The Finnish construction company Lemminkainen Corporation said on Tuesday (30 March) that it had requested the Finnish stock exchange Helsinki Exchanges (HEX) to suspend trading in the company's share for the time being.
The Tokyo Stock Exchange (TSE) said Tuesday a computer glitch forced it to suspend trading in shares of SOFT 99 Corp.
And at press time in early July, Assisted Living Concepts was still laboring under the American Stock Exchange's decision, more than 10 weeks earlier, to suspend trading of the Portland-based provider's stock.