Is it a good thing or a bad thing when a stock gets suspended?
2007-01-07 14:42:52 · 2 answers · asked by Rollercoaster 4 in Business & Finance ➔ Investing
could be good or bad or neither
the stock exchange has curbs to prevent things from happening to fast. so if i stock goes up or goes down a certain percentage very quickly, it gets suspended so that some time can go by for the market to reflect on the movement.
its meant to just allow time to go by so information can be mulled and so that irrationality doesnt cause a total collapse or skyrocket without good cause.
2007-01-07 14:51:44 · answer #1 · answered by my name is call me ishmael 1 · 0⤊ 0⤋
Usually it is a really, seriously bad thing. They don't casually do that. I've seen one, maybe two, false alarms about things that suspended a company in trading. Usually, it is something about some feds marching in and carting off truckloads of financial records along with some of the top brass in handcuffs. The stock price will stink like a week-old dead skunk on the highway.
2007-01-07 14:54:31 · answer #2 · answered by Rabbit 7 · 0⤊ 0⤋