What Is Suspend (You Need To Know If You Are A Stock Player)


what is suspend
what is suspend

What is Suspend – Suspend is one form of the term in stock investment which means suspended. In this opportunity, I will discuss about what is meant by suspend along with examples of suspend in the world of stock investment.

What is Suspend

suspend
suspend

In this investment world, the term suspend or suspended means that trading between stocks is suspended by an authorized exchange. This trading stop is mainly done in order to maintain certain security and for a temporary period. Usually also, the period of suspended stock can last up to a long time or a short time, this happens according to what has been determined and done so this adjusts, depending on the policy when making a purchase. Security that has been tightly guarded is usually related to company assets or operational activities, it can also be something that is intended to protect certain financial information. This exchange sometimes does not give early warning to investors about the occurrence of suspended trading. This is due to earlier announcements that can have a negative impact on investors.

The Cause of Stock Suspension

  1. Big News from Stock Issuers
    When an event like this occurs, usually the companies where the shares issuer inform the stock exchange about the important news. After that, the exchange will immediately carry out this suspended trading action. In this way, the market will have time to receive important information that will be announced later, regardless of whether the information is profitable or not.
  2. Company Cannot Meet Completeness of Data
    This stock exchange can ask for complete detailed data on a share with a company for a certain period. If the share issuing company that can be related is unable to complete the request, it can lead to the presence of this suspended trading action.
  3. Illegal Activities of Issuers
    Issuers who are being suspended means that they cannot trade shares. One of the causes is the issuer or share issuer who has been suspected or even proven to be involved in a case that violates existing laws.

That’s the information I can share. Thank you for visiting. Hopefully this article can be useful for information purposes only.