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Freeze

Updated on March 11, 2023


Freeze in stock markets refers to a situation when the trading or transactions in a stock are stopped or halted or cannot be carried out successfully. It is different from price ‘circuits’ or ‘filters’ and freeze in markets is not a very common phenomenon. A situation when a trader or investor wants to buy a particular stock from an exchange, but there is no available seller, it is called a ‘buying freeze’. Similarly, when an investor or trader wants to sell a stock and there is no available buyer, it is known as the ‘selling freeze’. Freezes can occur due to a technical issue, very high volatility, Insider trading or pump and dump of shares.