Stock suspension refers to the continuous rise or fall of stock prices due to certain news or certain activities, and the stock exchange suspends its trading in the stock market. After the situation is clarified or the company returns to normal, it will resume trading on the exchange.
Suspension of the stocks of listed companies is a necessary measure taken by the stock exchange in order to safeguard the interests of the majority of investors and the fairness and impartiality of market information disclosure, as well as to supervise and restrain the behavior of listed companies.
Stocks are suspended for the following reasons:
When a listed company announces important information, such as announcing annual reports and interim performance reports, convening shareholders’ meetings , increasing capital and shares, announcing distribution plans, major mergers and acquisitions, investments and changes in equity, etc .; When clarification and announcement are made on issues of major impact; when a listed company is suspected of violations and needs to be investigated, the length of the suspension period shall be determined according to the circumstances.
After the stock is suspended from trading, as long as the listed company fully, accurately and completely discloses information that may have a greater impact on the trading price of the company’s stock and its derivatives as required, the company’s stock and its derivatives may resume trading.
Are stock suspensions a good thing?
Whether a stock suspension is a good thing or a bad thing depends on the reasons for the suspension. If the reason for the suspension is good for the development of the listed company, it is a good thing, but it is not good for the development of the listed company, or it is supervised by the management.