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Tuesday, 05/25/2010 9:40:05 AM

Tuesday, May 25, 2010 9:40:05 AM

Post# of 22746
A trading halt—which typically lasts less than an hour but can be longer—is called during the trading day to allow a company to announce important news or where there is a significant order imbalance between buyers and sellers in a security. A trading delay (or "delayed opening") is called if either of these situations occurs at the beginning of the trading day.

There are two types of trading halts and delays—regulatory and nonregulatory. The most common regulatory halt and delay happen when a company has pending news that may affect the security’s price (a "news pending" halt or delay). By halting or delaying trading, market participants can have time to assess the impact of the news.

http://www.sec.gov/answers/tradinghalt.htm
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