Suspended Trading

Business / Taxes / Suspended Trading: Suspended trading means that an exchange has temporarily stopped trading in a particular stock or other security. Trading is typically halted either because an important piece of information about the issuing company is about to be released or because there’s a serious imbalance between buy and sell orders, often triggered by speculation. In the case of an expected announcement, the affected company generally notifies the exchange that the news is imminent. The suspension, or trading halt, provides time for the marketplace to absorb the announcement, good or bad, and helps reduce volatility in the stock price. Examples of news that could cause a suspension are a poorer than expected earnings report, a major innovation or discovery, a merger, or significant legal problems. The Securities and Exchange Commission (SEC) can also suspend trading in the stock of a company it suspects of misleading or illegal activity.

Trading Paper

Business / Finance / Trading Paper: When trading of a stock, bond, option or futures contract is stopped by an exchange while news is being broadcast about the security. See: Suspended trading. MORE

Trading Costs

Business / Finance / Trading Costs: A document (power of attorney) a customer gives to a broker in order that the broker may buy and sell securities on behalf of the customer. MORE

Trading Dividends

Business / Finance / Trading Dividends: Costs of buying and selling marketable securities and borrowing. Trading costs include commissions, slippage, and the bid/ask spread. See: Transactions costs. MORE

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