suspended trading investment & finance definition
A
halt in trading of a stock or security to correct a major imbalance between
sell and buy orders. The imbalance may result from a major news announcement,
such as a report that a company’s earnings will be worse than expected or that
a merger announcement is expected. The exchange decides when to halt trading,
although the company can request that trading be halted.
See suspended trading in Wall Street Words
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.
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