Suspended Trading


DEFINITION of 'Suspended Trading'

A stoppage in the trading of a security for an extended period of time that normally occurs when there is a lack of material financial information on the security. Once the security is suspended, shares of that security cannot be traded on the market until the suspension is lifted or lapses. The exact amount of time for the suspension will be determined on on a case-by-case basis.

BREAKING DOWN 'Suspended Trading'

The SEC has the authority to suspend the trading of a security for up to 10 trading days to protect investors. The SEC has this ability under Section 12(k) of the Securities Exchange Act of 1934. The SEC will make the decision to do this based on an investigation and will then issue a press release detailing the reason for the suspension. The most common reason for suspension is due to a lack of publicly available, relevant and current financial information.

  1. Trading Halt

    A temporary suspension in the trading of a particular security ...
  2. Trading Curb

    A temporary restriction on program trading in a particular security ...
  3. Securities Exchange Act Of 1934

    The Securities Exchange Act of 1934 was created to provide governance ...
  4. Trade Resumption

    To resume trading activities after having been shut down (halted) ...
  5. Securities And Exchange Commission ...

    A government commission created by Congress to regulate the securities ...
  6. Exchange

    A marketplace in which securities, commodities, derivatives and ...
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