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What happens when a stock is halted?

April 26, 2017halted happens stock

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What happens when a stock is halted?

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If trading in a stock is halted because of regulatory concerns, the stock and options exchanges will coordinate the halt in trading so that trading in the options will also be halted. However, if trading is halted on an exchange because of a technical problem and the stock trades on another liquid market that can be accessed by investors, the options will continue to be traded. It is to be noted that if a stock is halted for whatever reason, options that are held can be exercised despite the trading halt.