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 ?
The TSE suspended trading in all listed shares at 2:40 p.
In response to the media report, the TSE suspended trading in Livedoor stock, listed on its Mothers market for start-ups, before it opens.
The TSE suspended trading in all five types of derivatives -- stock index futures and options, stock certificate options, bond futures and bond futures options -- when a computer problem disabled telecommunications between the bourse and 204 financial institutions including banks and brokerages.
Then on August 16, 2004, the Company announced that the New York Stock Exchange had suspended trading of Huffy shares.
22 Kyodo The Tokyo Stock Exchange (TSE) said Wednesday it has suspended trading of stocks in General Sekiyu K.
OCTBB:AIMT) today announced that the Securities and Exchange Commission has temporarily suspended trading in the Company's securities effective at 9:30 a.
The Tokyo Stock Exchange (TSE) briefly suspended trading in shares of Fuji Heavy Industries Ltd.
The SEC had suspended trading in DMT's common stock and instituted administrative proceedings to determine whether to revoke its securities registration because the Company failed to make any additional filings after its initial registration.