Suspended Trading Definition
Suspended Trading is temporary halt in trading of a security to correct serious imbalance between buy and sell orders. The imbalance is often triggered by speculation resulting from a major news announcement. The suspension provides time for the market to absorb the announcement, and helps reduce volatility in the security's price. Examples of news that could cause a suspension are a worse than expected earnings report, a merger announcement, a significant innovation or major legal problems. Suspension of trading can be decided by the exchange itself or on request of the issuing company.