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.
Copyright © 2012, Campbell R. Harvey. All Rights Reserved.

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.
Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved

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.
Wall Street Words: An A to Z Guide to Investment Terms for Today's Investor by David L. Scott. Copyright © 2003 by Houghton Mifflin Company. Published by Houghton Mifflin Company. All rights reserved. All rights reserved.

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.

Dictionary of Financial Terms. Copyright © 2008 Lightbulb Press, Inc. All Rights Reserved.
References in periodicals archive ?
LAHORE -- Fruit and vegetables smuggled from India are no longer available at the markets of Punjab after Islamabad suspended trade with New Delhi in response to the latter scrapping occupied Kashmir's special status and imposing a lockdown in the disputed territory.
Summary: Srinagar (Jammu and Kashmir) [India], Apr 19 (ANI): Hours after India suspended trade across the Line of Control (LoC) in Jammu and Kashmir saying the route was being misused by Pakistan-based elements to smuggle weapons, narcotics and fake currency, Peoples Democratic Party (PDP) chief Mehbooba Mufti on Thursday claimed that the BJP was using Kashmir as a scapegoat to make electoral gains.
Pakistan had closed the border at Chaman and Torkham on Friday in connection with parliamentary elections in Afghanistan that had suspended trade activities in the border town Chaman and Spin Boldak.
Lawmaker of GB Assembly Javaid Hussain said GB traders and government of Pakistan facing huge loss due to suspended trade between Pak-China through Khunjerab Pass.
Saudi Arabia's securities regulator has suspended trade in the shares of the kingdom's listed telecommunications operators after the government decided to extend their licences, as reported by Reuters .
Japan had earlier suspended trade insurance coverage for Cuba in 2010 due to political reasons.
In a separate announcement, the bourse said it suspended trade in Hellenic Bank shares for a day to clarify the bank's attempts to raise capital for regulatory purposes.
Summary: TEHRAN (FNA)- Iranian Foreign Ministry spokesman Ramin Mehman-Parast denied reports that Iran had suspended trade transactions with the United Arab Emirates (UAE).
Iranian Foreign Ministry spokesman Ramin Mehmanparast on Tuesday denied earlier reports that Iran had suspended trade transactions with the UAE.
Earlier on Friday, the bourse in Athens suspended trade in the shares in both banks ahead of the expected announcement.
suspended trade of the Mobile Telecommunications Company (Zain) until it
The Warsaw stock exchange has said that it has suspended trade in Bank Austria (BACA.WA) shares on Wednesday, reports Reuters.