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Suspended Trading

Suspended Trading Definition

Suspended Trading is temporary halt in trading of a security to correct serious imbalance between buy and sell orders. The imbalance is often triggered by speculation resulting from a major news announcement. The suspension provides time for the market to absorb the announcement, and helps reduce volatility in the security's price. Examples of news that could cause a suspension are a worse than expected earnings report, a merger announcement, a significant innovation or major legal problems. Suspension of trading can be decided by the exchange itself or on request of the issuing company.

RELATED TERMS
Order Imbalance
RELATED CATEGORIES
Active Trading







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