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 ?
Meanwhile, the Dubai bourse has suspended trading on seven Kuwaiti companies that missed the deadline to provide the exchange with full and audited financial statements as per the UAE Securities and commodities Authority (SCA) and DFM requirements.
Mineral exploration company First Quantum Minerals Ltd (TSX:FM) (LSE:FQM) and Kiwara plc (LSE:KIW) (JSE:KWR) revealed today that, after Kiwara's shareholders' approval of the proposed scheme of arrangement, First Quantum has acquired the entire issued share capital of Kiwara (the Scheme) and also suspended trading in Kiwara shares on AIM today (Thursday).
Zijin Mining Group Company (Zijin Mining) (2899.HK), an international mining group, has suspended trading of its shares in Shanghai for one day on November 30, 2009.
The Icelandic Stock Exchange has temporarily suspended trading in six major financial institutions at the request of the country's Financial Services Authority.
Gold and silver jewellery maker Abbeycrest suspended trading in its shares yesterday pending a refinancing within "days".
International and domestic flights in Taiwan have been severely disrupted after a typhoon hit the island, which has suspended trading on its stock market for 25 October 2004.
The London Stock Exchange has suspended trading in shares of hotels group Queens Moat Houses.
DFM suspended trading of one foreign listed company that missed the deadline to disclose results.
Meanwhile, DFM suspended trading on 3 foreign companies that missed the deadline to provide the exchange with the financial statements as per the UAE Securities and commodities Authority (SCA) and DFM requirements.
Japan Bond Trading Co., which operates around 60 percent of the broker-to-broker trading of the bonds, said Friday it suspended trading from shortly after 1 p.m., citing a failure in its dealing system.
Meanwhile, DFM suspended trading on nine Kuwaiti companies that missed the deadline to provide the exchange with full and audited financial statements as per the UAE Securities and commodities Authority (SCA) and DFM requirements.
Meanwhile, DFM said it had suspended trading on nine Kuwaiti companies that missed the deadline to provide the exchange with full and audited financial statements as per the UAE Securities and commodities Authority (SCA) and DFM requirements.