Investing Answers Building and Protecting Your Wealth through Education Publisher of The Next Banks That Could Fail
Investing Answers Building and Protecting Your Wealth through Education Publisher of The Next Banks That Could Fail

Held at the Opening

What it is:

There are a lot of reasons a security might be held at the opening: acquisition announcements, order problems or listing violations.

How it works (Example):

Stock exchanges can stop trading at any time, but when they stop a security from trading before the beginning of the trading day, they are holding a security at the opening. For instance, let's say Company XYZ made an offer last night to the board of directors of Company ABC to acquire Company ABC for $5 a share. Company ABC notifies the exchange on which its shares are listed, and the stock is held at the opening so that the market can digest the information. The exchange delays the start of trading in Company ABC shares until later that morning.

Why it Matters:

Held at the opening is a phrase that describes situations in which a security does not trade at the beginning of the trading day.