Trading suspension

Trading suspension refers to the temporary halt in trading or exchange of a particular security or securities in the market. This action, often implemented by regulatory authorities or the stock exchange itself, is typically undertaken to maintain or restore orderly trading conditions, safeguard market integrity, and protect investors. Reasons for a trading suspension may include unusual volatility, significant company announcements, suspected market manipulation, or concerns about the company’s financial health. During a trading suspension, investors cannot buy or sell the suspended securities until trading is resumed, which can be unsettling but is often necessary for the overall stability of the financial markets.