DEFINITION of ‘Halted Issue’
A planned security offering that does not go forward as planned. A halted issue can relate to an initial public offering (IPO) that will no longer occur, or to a bond issue that has been canceled, along with any other form of security offering that does not go on as originally expected. While an issue may be halted for any variety of reasons, a halted issue is often the result of an unexpected event that the market perceives as negative for the issuer.
BREAKING DOWN ‘Halted Issue’
For example, a company that plans to issue a corporate bond at a given coupon may have to halt the issue if a situation arises where its bond rating is reduced, causing interest in the bond to fall dramatically, to the point where the bond issue is no longer feasible. When an IPO is halted, the firm may find that the capital markets are not looking kindly on other recent IPOs within its industry and choose to halt the issue at that time.