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 ?
She appreciated the business community for unanimously supporting government decision to suspend trade with India by putting national interest above personal interests.
She said that in the tensions on the borders, business community suffered but traders had shown their patriotic approach by fully supporting government move to suspend trade with India.
ISLAMABAD -- The Employers' Federation of Pakistan (EFP), while supporting the decision to suspend trade with India, has appealed to the government to allow those Indian origin goods in local markets that have already arrived at Pakistani airports or seaport.
Summary: Islamabad [Pakistan], Aug 9 (ANI): People across Pakistan are fearing that the prices of all food items could skyrocket following the country's decision to suspend trade relations with India after the latter abrogated Article 370 which granted special status to Jammu and Kashmir.
Qureshi spoke as the government released a statement declaring that Pakistan will suspend trade with India in a downgrading of diplomatic ties between the arch-rivals.
Meanwhile, the business community also announced to support the government's decision to suspend trade with India.
In the latest escalation in tensions between Ukraine and Russia over Crimea, Ukrainian Prime MinisterAaAaAeAeAaAeAeA Arseniy YatsenyukAaAaAeAeAaAeAeA saidAaAaAeAeAaAeAeA Wedne will suspend trade to the peninsula startingAaAaAeAeAaAeAeA in 30 days, local m reported.
NSEL's decision to suspend trade in all contracts except for ' eseries' prod- ucts like gold and silver came merely a fortnight after the government asked it not to launch new contracts.
LAHORE -- Head of banned Jamaat-u-Dawa, Hafiz Saeed urged the government to suspend trade and diplomatic relations with India and called for prompt investigation regarding Sana Ullah killing.
M2 EQUITYBITES-March 8, 2013-Gemina, Atlantia suspend trade ahead of statement release(C)2013 M2 COMMUNICATIONS http://www.m2.com
The increase prompted the stock market to suspend trade on OT shares.
One of the most controversial changes brought about by the reports is the power of the European Securities and Markets Authority (ESMA) to suspend trade in certain financial products.