Printer Friendly
Dictionary, Encyclopedia and Thesaurus - The Free Dictionary
3,897,754,618 visitors served.
forum Join the Word of the Day Mailing List For webmasters
?
Dictionary/
thesaurus
Medical
dictionary
Legal
dictionary
Financial
dictionary
Acronyms
 
Idioms
Encyclopedia
Wikipedia
encyclopedia
?

Suspended Trading
(redirected from Suspend Trading)

     0.01 sec.
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.
Want to thank TFD for its existence? Tell a friend about us, add a link to this page, add the site to iGoogle, or visit the webmaster's page for free fun content.
?Page tools
Printer friendly
Cite / link 		Feedback
Add definition
Mentioned in?  References in periodicals archive?   Financial browser?   Full browser?
 
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.
Bangladesh stocks end 15% higher after free fall prompts protests by Khaleej Times (Dubai, United Arab Emirates)
KARACHI, September 12, 2009 (Balochistan Times): Karachi Stock Exchange (KSE) has announced to suspend trading in the convertible and non-convertible preference shares of Azgard Nine Ltd from September 25, on account of clubbing of these share into one security.
KSE suspends trading of Azgard Nine Ltd from Sept.25 by Balochistan Times (Baluchistan Province, Pakistan)
The CFTC or SEC will also be able to suspend trading in CDS with the President's approval, but only in situations where the SEC has suspended short-selling in the underlying securities.
CDS bill moves forward by Barlas, Stephen; Beresford, Dennis; Brenne, Gordie; Osheroff, Mike; Williams, Kathy / Strategic Finance
 
 
 
Financial Dictionary
?

Terms of Use | Privacy policy | Feedback | Advertise with Us | Copyright © 2012 Farlex, Inc.
Disclaimer
All content on this website, including dictionary, thesaurus, literature, geography, and other reference data is for informational purposes only. This information should not be considered complete, up to date, and is not intended to be used in place of a visit, consultation, or advice of a legal, medical, or any other professional.