What happens when a company has it's shares suspended?

Question

What happens when a company has it's shares suspended?

How does this effect the shareholders?

What happens after that?

thanks

Answer 1

I think if i am thinking right the company goes broke and the share holders lose their money

Answer 2

Right now ,

BLG : NYS   Halted ; news pending

accross my trade screen , usually news or even a raid as happend to wellcare last year will stop trading . worst case is bankruptcy but you will be aware of the possobility of that happening a long time before it does

Answer 3

You can not buy or sell the stocks of a company on any stock  exchange once they are suspended.

The shareholder loses the money he has invest3ed since he can not sell the stock anywhere. Only hope for the stock holder will be that the stock starts trading again on the stock market again.

If the fortunes of the company do not revive the shareholder as such can not bring any claim against the company. All he is left with is the scrap of paper which has no value.

Answer 4

Can you name the company and I can get you an answer

Answer 5

There are two types of suspension. At the company's request or at the Stock Exchange request. Both can either be because of pending bad news or good news. The worst case is if the statement says "suspended pending clarification of company's financial situation"

More often it is bad news, especially if the share price has been going down previous to the announcement. Whilst the stock is suspended no trading is allowed or transfer of shares. Once the matter has been sorted and the news published the shares may be re-quoted (at a much lower price or maybe higher) You cannot usually tell when they are coming back, so keep a good look out.

Answer 6

Yah stick yah head between yah legs and kiss yah azz goodbye!