Suspended trading

(redirected from Trading Halts)

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 ?
announced its intent to file a letter with the Securities and Exchange Commission (SEC) regarding the primary market's authority to initiate and continue trading halts on an intermarket basis.
On Friday, December 5, NASDAQ called a trading halt in Corinthian Colleges, a NASDAQ-listed stock, when it determined that there was a system malfunction outside of NASDAQ that affected trading of the stock in all marketplaces.
In recommending circuit breakers, the Working Group intended to substitute planned trading halts for unplanned ones ".
The Working Group's original support for some form of planned trading halts should be placed in the context of the other recommendations of the Report.
The trading halts should not be triggered so frequently as to create more disruptions than the unplanned halts they are intended to prevent.
That riotous session saw the market dive 166 points during the lunch hour, stop in midair after automatic regulatory trading halts were imposed, and then rocket upward to end the day ahead by nine points.
sorts of trading halts are not unusual whenever we think a company needs
I have seen trading halts last for a couple of hours to a couple of
The trading halts in its common shares imposed by the Vancouver Stock Exchange and The Nasdaq Stock Market, Inc.
Since the imposition of trading halts, several class actions have been filed in the United States against the Company and certain of its officers and directors, alleging various securities law violations in respect of the announcements made about the Arab Group Financing Agreement.