Finance: What is suspended trading?

What is suspended trading? It has nothing to do with suspenders, which is a bummer...we love suspenders. They're so jaunty.

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Transcript

00:16

switching to decaf No Okay So what really is suspended

00:20

trading trading in a security that is stopped suspended as

00:24

if in mid air like those chinese acrobats Well the

00:28

big question here why was trading suspended Could be one

00:31

of many reasons the company didn't provide proper financial documentation

00:36

in their quarterly report so the auditors didn't sign off

00:39

Ouch Yeah Not normally Bullish for a stock or company

00:43

is found guilty of fraud Or the ceo was caught

00:47

on tape holding squirrel fighting matches in his basement All

00:51

right Well the nineteen thirty four act gave the sec

00:53

the right to suspend trading for ten days now pretty

00:57

much any time they reasonably thought it necessary to protect

01:00

irving q investor And when this happens it's oh so

01:04

not good for the company in question The suspension itself

01:08

stops trading in the stock usually causing at least gentle

01:12

Panic among the myriad nervous nellie penguins out there just

01:16

dying to sell their stock But they can't because trading

01:19

is suspended and they get incrementally more nervous is the

01:22

minutes go by such that it well it makes them

01:25

do this So how does the pain end Euthanasia No

01:29

generally a standard form suspension last for ten days And

01:33

then it's done the thought being that if a company

01:35

takes longer than ten days to get its compliance act

01:39

in order well then seriously worse things were involved in

01:42

other agencies will probably then come to play Think fbi

01:46

the default tend a lapse may happen and then the

01:49

security is unsuspected presumably with company going on and on

01:53

and on endlessly about what happened and why and how

01:56

and how it will never happen again knowing that a

01:58

bunch of ambulance chasing lawyers from new york city will

02:01

sue them for not having filed properly the form from

02:04

the division in somalia and now the company according to

02:07

the lawyer zoe's shareholders eighteen billion dollars hopefully for the

02:12

company there payable in somalia in dollars or shareholders are

02:15

going to work out some kind of suspender trade Yeah 00:02:18.39 --> [endTime] About that