Trading Halt

What does it mean?
A pause in the trading of a particular security on one or more exchanges, usually in anticipation of a news announcement or to correct an order imbalance. During a trading halt, open orders may be cancelled and options may be exercised. A trading halt gives all investors equal opportunity to evaluate news and make buy, sell, or hold decisions on that basis. A trading halt may also be imposed for purely regulatory reasons.

In Other Words...
The stock exchange can halt a stock at anytime if they feel suspicious things are occurring in regards to the stock price. The stock typically doesn't start trading until the company releases information on their stock.

Related Links
NasdaqTrader.com - Triggers for circuit breakers on the Nasdaq.

Related Terms
Circuit Breaker | Collar

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