Not quite.

Here's the full info for stock haults:

Stock halts are triggered by several factors, primarily aimed at ensuring fair and orderly markets. These halts can be categorized into regulatory halts, volatility halts, and trading pauses:

1. Regulatory Halts

Regulatory halts occur when a regulatory authority, such as the Securities and Exchange Commission (SEC) or a stock exchange, pauses trading to address specific issues. These can include:

• News Pending: When a company is about to release significant news that could impact its stock price, trading may be halted to allow investors to digest the information.
• Order Imbalance: If there is a significant imbalance between buy and sell orders, a halt can be imposed to allow for an orderly market.
• Corporate Actions: Events like mergers, acquisitions, or other significant corporate actions can trigger halts.

2. Volatility Halts

Volatility halts are designed to prevent extreme price movements and protect investors from sudden market swings. These are often governed by specific rules and thresholds:

• Limit Up-Limit Down (LULD) Rule: This rule aims to prevent trades in individual securities from occurring outside specified price bands, which are set based on a reference price and adjusted continuously. If a stock's price moves too quickly outside these bands, a trading halt is triggered.
• Circuit Breakers: These are mechanisms that apply to the broader market. If major indices like the S&P 500 or Dow Jones Industrial Average experience a dramatic decline, trading across the entire market can be halted temporarily. Circuit breakers are typically set at three levels:
  • Level 1: A 7% decline from the previous day's closing price halts trading for 15 minutes.
  • Level 2: A 13% decline triggers another 15-minute halt.
  • Level 3: A 20% decline stops trading for the remainder of the day.

3. Trading Pauses

Trading pauses can be imposed by exchanges to address extraordinary market conditions:

• Single-Stock Circuit Breakers: If a stock experiences rapid price movement within a five-minute period, a trading pause may be initiated to provide time for market participants to assess the situation.
• Exchange-Specific Rules: Different exchanges may have their own rules for halting trading under certain conditions, such as technical issues or significant order imbalances.

Examples and Implications

For instance, during the COVID-19 pandemic, multiple circuit breakers were triggered in March 2020 due to extreme market volatility. Similarly, individual stocks can face halts due to unexpected earnings announcements or significant corporate news, like a CEO's sudden resignation or a major acquisition.