Suspended trading

Also found in: Dictionary, Thesaurus, Medical, Legal, Encyclopedia.

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 said it suspended trading of Fuji Heavy shares and convertible bonds at 8:20 a.
The exchange said it had to impose the provisional trading halt because the New York Stock Exchange suspended trading in Ameritech shares.
The TSE suspended trading in shares of the brokerage at 8:20 a.
Beginning April 1, 2004, the SEC suspended trading of Vaso Active because of questions regarding the accuracy of statements made by defendants concerning FDA approval of key products and the regulatory consequences of the future application of its primary product.
On April 8, 2004, the Securities and Exchange Commission temporarily suspended trading in the common stock of BioCurex Inc.
S Securities and Exchange Commission (the "Commission") temporarily suspended trading of the securities of Vaso Active Pharmaceuticals, Inc.
Securities and Exchange Commission temporarily suspended trading of the Company's securities because questions had been raised about the accuracy and adequacy of publicly disseminated information concerning, among other things, its lateral drilling operations and anticipated and actual revenues.
Fitch notes that the New York Stock Exchange suspended trading of Interpool's common equity, trust preferred securities, and convertible redeemable subordinated debentures today.
Separately, the Company announced that the The Nasdaq Stock Market, which on November 13 suspended trading in the Company's common stock, has notified the Company that it intends to delist the company's common stock for failure to comply with Marketplace Rule 4310(c)(14) due to the Company's failure to file its quarterly report on Form 10-Q for the period ended September 30, 2003.