Nasdaq Seeks Homestore.com Data

Homestore.com Inc., the biggest online home listing company, must provide more information on its internal accounting inquiry before trading of its stock can resume, the Nasdaq Stock Market said.

Trading was halted Friday when Homestore.com said that it would restate certain financial results, has hired an independent counsel and accountants to assist it and that its board had notified the Securities and Exchange Commission of the inquiry.

The reason for the halt in trading of the company’s shares was changed from “news pending” to “additional information requested,” Nasdaq said. Scott Peterson, a Nasdaq spokesman, declined to comment on what information was requested. Homestore.com officials weren’t immediately available to comment.

The Westlake Village-based company has come under fire from analysts this year for using its own stock to pay operating expenses and for the way it books advertising revenue. The company’s shares are down 82% this year and its chief financial officer, Joseph Shew, resigned this month.

Homestore.com’s shares rose 34 cents to $3.60 on Friday before the accounting inquiry was announced.

The company had said it might take a charge of as much as $950 million in the fourth quarter for the declining value of acquisitions.

Homestore.com, which has more than 90% of the home-sale listings on the Internet, is suffering from a drop in advertising as the economy slows.