Shares of

Movie Gallery

( MOVI) were among the

Nasdaq's

losers Tuesday, falling 8% after the video rental company suspended its quarterly dividend.

The company said that it would not declare the third-quarter dividend because of "challenging conditions currently affecting the home video industry." In temporarily suspending the dividend, Movie Gallery said that its board "believes that it is more prudent at this time to focus on debt reduction and the working capital needs of the business." Looking ahead, the company said it would continue to re-evaluate its dividend policy. The company said it hopes to "reinstate a regular quarterly cash distribution as soon as conditions permit." Shares were trading down $1.02 to $11.80.

Party City

(PCTY) - Get Report

rose 38% after the party goods company agreed to be acquired by two private equity firms for about $360 million in cash. Berkshire Partners and Weston Presidio, through their holding company AAH Holdings, will pay shareholders $17.50 a share in cash, representing a 43% premium to Monday's closing price. The acquisition is expected to close at the end of 2005 or the beginning of 2006. Shares were trading up $4.67 to $16.95.

Shares of

Taser

(TASR)

fell 9% after the company said the

Securities and Exchange Commission's

informal inquiry of the company has been expanded into a formal investigation. "The company further understands that the investigation has been expanded to now include examining the possible unauthorized acquisition of material non-public information by individuals outside of the company in an effort to manipulate the company's stock price," Taser said in a statement. The stun-gun maker also said it hopes the SEC will address all pertinent issues, including the fact that Taser has been listed on the Regulation SHO threshold list since the list's inception in January 2005. Taser's CEO said "recent data from ADP indicates there may be a large improper, naked short position in Taser International stock." Shares were trading down 68 cents to $6.63.

Audiovox

(VOXX) - Get Report

fell 20% after the company cut its third-quarter sales outlook. The consumer electronics maker now expects a loss of 16 cents to 18 cents a share on sales of about $123 million. Previously, the company said that it would post sales of $135 million. According to Thomson First Call, one analyst was expecting earnings of 7 cents a share on sales of $142.5 million. Audiovox said that its new guidance is due to "unexpected drastically reduced pricing by one of the company's primary competitors that has resulted in an almost 50% reduction in market pricing for satellite radio plug and play units, adversely impacting both anticipated sales and profits for the company." Although the company believes the negative impact from the satellite radio situation will be short lived, Audiovox said its fourth-quarter sales would be negatively affected by the retail price of the satellite radio plug and play units. Shares were trading down $3.27 to $13.37.

Shares of

ECC Capital

(ECR) - Get Report

fell 7% after the real estate investment trust lowered its third-quarter dividend payout. The payout of 18 cents a share was 18% lower than the second-quarter payment of 22 cents a share. "In light of today's business environment and the current state of equity markets, we are focused on managing our business conservatively and preserving our flexibility with respect to capital," the company said. Shares were trading down 24 cents to $3.36.

NYSE

volume leaders included

Calpine

(CPN)

, down 9 cents to $2.35;

Nokia

(NOK) - Get Report

, down 20 cents to $16.40;

EMC

(EMC)

, down 38 cents to $12.10;

Pfizer

(PFE) - Get Report

, down 4 cents to $25.15;

General Electric

(GE) - Get Report

, up 10 cents to $33.37;

Corning

(GLW) - Get Report

, down 27 cents to $18.58;

Lucent Technologies

( LU), down 1 cent to $3.07; and

Pike Electric

( PEC), up $1.24 to $18.99.

Nasdaq volume leaders included

JDSU

(JDSU)

, up 10 cents to $2.11;

Microsoft

(MSFT) - Get Report

, up 16 cents to $25.43;

MCI

( MCIP), down 10 cents to $25.41;

Intel

(INTC) - Get Report

, up 4 cents to $24.26;

Oracle

(ORCL) - Get Report

, down 1 cent to $12.39;

Cisco Systems

(CSCO) - Get Report

, down 8 cents to $17.84; and

Sun Microsystems

(SUNW) - Get Report

, down 6 cents to $3.87.