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Investing Glossary:
Imbalance of orders
Copyright 2009,
Campbell R. Harvey. All Rights Reserved.
Do not reproduce without explicit permission.
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| Term: |
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| Definition: |
| Used for listed Equity securities. Too many Market orders of one kind-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 as a takeover, research recommendation, or 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.
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