Trading Halts

Trading halts are temporary pauses in the buying and selling of a stock on an exchange, implemented to allow time for important news to be disclosed or to prevent panic during extreme market volatility. They help ensure all investors have equal access to information and reduce the risk of sudden, unpredictable price swings. Halts can be initiated automatically by rules or manually by regulators, and their duration varies depending on the reason, such as pending news or significant market disruptions. Once the issues are addressed, trading resumes, promoting fair and orderly market operation.