Held At The Opening

Definition of 'Held At The Opening'


A situation in which a security is restricted from trading when the stock exchange opens for the day. Stock exchanges can halt trading on securities at any time, but trading usually resumes in under an hour. If the halt occurs before the beginning of a trading day, the stock is considered held at the opening. This kind of halt in trading is done to protect investors.

Investopedia explains 'Held At The Opening'


There are three main reasons why a stock is held at the opening:

1. The company plans to release new information that could have a drastic impact on the stock's price. Time is given for participants to fully understand the new information and place buy and sell orders accordingly.
2. There is an imbalance of buy and sell orders.
3. The stock does not meet the listing requirements set by the regulatory body.

For example, a stock may be held at opening if there is a significant imbalance in buy and sell orders before the opening bell, the stock can be held at opening. This will give market specialists time to disseminate the information to investors and make a decision on a fair trading-price range.



comments powered by Disqus
Hot Definitions
  1. Passive ETF

    One of two types of exchange-traded funds (ETFs) available for investors. Passive ETFs are index funds that track a specific benchmark, such as a SPDR. Unlike actively managed ETFs, passive ETFs are not managed by a fund manager on a daily basis.
  2. Walras' Law

    An economics law that suggests that the existence of excess supply in one market must be matched by excess demand in another market so that it balances out. So when examining a specific market, if all other markets are in equilibrium, Walras' Law asserts that the examined market is also in equilibrium.
  3. Market Segmentation

    A marketing term referring to the aggregating of prospective buyers into groups (segments) that have common needs and will respond similarly to a marketing action. Market segmentation enables companies to target different categories of consumers who perceive the full value of certain products and services differently from one another.
  4. Effective Annual Interest Rate

    An investment's annual rate of interest when compounding occurs more often than once a year. Calculated as the following:
  5. Debit Spread

    Two options with different market prices that an investor trades on the same underlying security. The higher priced option is purchased and the lower premium option is sold - both at the same time. The higher the debit spread, the greater the initial cash outflow the investor will incur on the transaction.
  6. Odious Debt

    Money borrowed by one country from another country and then misappropriated by national rulers. A nation's debt becomes odious debt when government leaders use borrowed funds in ways that don't benefit or even oppress citizens. Some legal scholars argue that successor governments should not be held accountable for odious debt incurred by earlier regimes, but there is no consensus on how odious debt should actually be treated.
Trading Center