Suspended trading(redirected from Trading Halts)
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.