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. Exchange

    A marketplace in which securities, commodities, derivatives and ...
  2. Trading Curb

    A temporary restriction on program trading in a particular security ...
  3. Trading Halt

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

    A government commission created by Congress to regulate the securities ...
  5. Securities Exchange Act Of 1934

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

    To resume trading activities after having been shut down (halted) ...
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. Learn More About Your Investments: Using ...
    Investing

    Learn More About Your Investments: Using ...

  4. Eight Financial Safeguards If Disaster ...
    Personal Finance

    Eight Financial Safeguards If Disaster ...

comments powered by Disqus
Hot Definitions
  1. Debit Spread

    Two options with different market prices that an investor trades on the same underlying security. The higher priced option ...
  2. Odious Debt

    Money borrowed by one country from another country and then misappropriated by national rulers. A nation's debt becomes odious ...
  3. Takeover

    A corporate action where an acquiring company makes a bid for an acquiree. If the target company is publicly traded, the ...
  4. Harvest Strategy

    A strategy in which investment in a particular line of business is reduced or eliminated because the revenue brought in by ...
  5. Stop-Limit Order

    An order placed with a broker that combines the features of stop order with those of a limit order. A stop-limit order will ...
  6. Pareto Principle

    A principle, named after economist Vilfredo Pareto, that specifies an unequal relationship between inputs and outputs. The ...
Trading Center