what is stock halting and how/why does it happen
In: Economics
Usually whenever uncontrollable factors such as board member deaths and the like are projected to lower stock value that entity can say we wont pay beyond a percentage of the stocks value basically halt/locking the price share as a result. People may want to trade for lower prices but in the end the actual value of the stock cant be held against others that are in the same industry or market because the company has locked their shares from being worth more and not less. In practice this protects current shareholder assets value to a degree by deterring potential buyers who intend to liquidate any proceeds they might gain from shorting the stock or cashing out before a fiscal period has passed.
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