Used for listed equity securities. Too many
market orders of one kind -- to
buy or to sell or
limit orders to buy up or sell down, without matching orders of the opposite kind. An imbalance usually follows a dramatic event such a
takeover, research recommendation, death of a key executive, or a government ruling that will significantly affect the company's business. If it occurs before the
stock exchange opens,
trading in the
stock is delayed. If it occurs during the trading day, the
specialist halts and then
suspends trading (with floor governor's approval) until enough matching orders can be found to make an orderly market.