Suspended Trading

AAA

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.

INVESTOPEDIA EXPLAINS '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.

RELATED TERMS
  1. Trading Halt

    A temporary suspension in the trading of a particular security ...
  2. Securities And Exchange Commission ...

    A government commission created by Congress to regulate the securities ...
  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. Curbs In

    A term used in investing to signify when trading curbs are active. ...
  6. Exchange

    A marketplace in which securities, commodities, derivatives and ...
Related Articles
  1. Policing The Securities Market: An Overview ...
    Investing Basics

    Policing The Securities Market: An Overview ...

  2. What happens when a circuit breaker ...
    Investing

    What happens when a circuit breaker ...

  3. Material Adverse Effect A Warning Sign ...
    Markets

    Material Adverse Effect A Warning Sign ...

  4. Changes In Tax Legislation And Regulation
    Taxes

    Changes In Tax Legislation And Regulation

comments powered by Disqus
Hot Definitions
  1. Ghosting

    An illegal practice whereby two or more market makers collectively attempt to influence and change the price of a stock. ...
  2. Elasticity

    A measure of a variable's sensitivity to a change in another variable. In economics, elasticity refers the degree to which ...
  3. Tangible Common Equity - TCE

    A measure of a company's capital, which is used to evaluate a financial institution's ability to deal with potential losses. ...
  4. Yield To Maturity (YTM)

    The rate of return anticipated on a bond if held until the maturity date. YTM is considered a long-term bond yield expressed ...
  5. Net Present Value Of Growth Opportunities - NPVGO

    A calculation of the net present value of all future cash flows involved with an additional acquisition, or potential acquisition. ...
  6. Gresham's Law

    A monetary principle stating that "bad money drives out good." In currency valuation, Gresham's Law states that if a new ...
Trading Center