Understanding Stock Trading Terminology: What is a Stuckholder?

In the world of stock trading, there are a lot of terms that you will have to learn. One such term is referred to as a "stuckholder." Here are the basics of the "stuckholder" and how trading can affect you in the market.

What is a "Stuckholder"?

The term "stuckholder" refers to someone that holds shares of stock that cannot be sold. There are a few reasons why this could occur. You might be a stockholder of a company that is involved with some type of scandal or is on the verge of filing bankruptcy. When this information gets out, it may be very difficult to liquidate your holdings in the company, because no one wants to buy.

Suspended Stock Trading

Another reason that you may not be able to sell your stocks is because of suspended stock trading. Sometimes the SEC will halt trading on a particular security for as long as 10 days. This can happen, because of a financial scandal, or because the company did not file the proper paperwork with the SEC in time. When this happens, the SEC will stop trading immediately. Once trading resumes, the value of the stock will usually plummet from investor fears.