SEC Issues Investor Bulletin on Trading Suspensions
The SEC Office of Investor Education and Advocacy issued an Investor Bulletin to educate investors about the SEC rules and regulations related to trading suspensions.
According to the Investor Bulletin, federal securities laws generally allow the SEC to suspend trading in any stock for up to 10 business days when the SEC holds that suspension is required to "protect investors and the public interest." Circumstances that may lead the SEC to suspend trading include (i) a lack of current, accurate or adequate information about the company, (ii) questions about the accuracy of publicly available information about the company and (iii) questions about the trading in the stock.
The Investor Bulletin also provides a list of companies in which stock is currently subject to a trading suspension, or which previously have been subject to a trading suspension.