Definition of Halt in trading

A halt in trading is a temporary stop in the trading of a security. If a common stock is halted, all derivatives and convertibles will be halted as well.

Applying "Halt in trading" to Securities Exams:

A halt in trading may occur if there is significant news pending, a sudden influx of orders or if the stock price has moved significantly and has triggered the single stock circuit breaker. If the trading in a stock is halted as a result of news pending the market place will be able to digest the information and price the security accordingly as a result of the news. Trading halts may last a few minutes or in extreme cases a few days.

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