Suspension of stock trading refers to the continuous rise or fall of stock price caused by certain news or certain activities, which is suspended from trading in the stock market by the stock exchange. After the situation is clarified or the enterprise returns to normal, it will resume trading on the exchange.
Suspension of the shares of listed companies is a necessary measure adopted by the stock exchange in order to safeguard the interests of the majority of investors, to make market information disclosure fair and just, and to supervise and restrict the behavior of listed companies.
Shares are suspended for the following reasons:
When the listed company has important information to announce, such as the publication of annual report, interim performance report, holding a shareholders’ meeting, capital and share increase, announcement of distribution plan, major mergers and acquisitions, investment and equity changes; When the securities regulatory authority considers that the listed company is required to make clarifications and announcements on issues that have a significant impact on the company; Listed companies suspected of violations need to be investigated, as for the length of suspension to determine the circumstances.
After the suspension of stock trading, as long as the listed company fully, accurately and completely discloses the information that may have a great impact on the trading price of the company’s stock and its derivatives, the company’s stock and its derivatives can resume trading.
Is the stock suspension a good thing?
Whether the stock suspension is a good thing or a bad thing should be analyzed according to the reasons for the suspension. If the reason for the suspension is favorable to the development of the listed company, it is a good thing, while it is unfavorable to the development of the listed company, or it is supervised by the management, it is undoubtedly a bad thing.