Is it safe to invest in a company after a temporary suspension of trading
by the Securities and Exchange Commission?
If you are interested in investing in a company that has been subject to
a temporary suspension of trading in the past, it’s not surprising
that you have questions and want to protect yourself. When the Securities
and Exchange Commission (SEC) temporarily suspends trading in the securities
of a company, it generally means that there are some serious questions
about fraud or misconduct that could affect investors.
Although the temporary suspension only lasts for 10 days, the SEC may continue
an investigation and enforcement action afterwards, and brokers may be
limited in soliciting investors for the securities after the suspension
If you are interested in investing with a company that has been suspended
in the past, it is recommended that you proceed with caution, find out
why trading was suspended, research the company, make use of the SEC’s
EDGAR database, talk openly with your broker-dealer, and learn everything
you can before deciding to hand over your cash.
If you have questions about a trading suspension by the SEC, or if you
believe that you have become the victim of stockbroker fraud, please don’t
hesitate to reach out to someone who can help. A stockbroker misconduct
lawyer with Meyer Wilson would be happy to meet with you in a completely
free and confidential legal consultation to discuss your concerns and
provide guidance. To schedule a consultation, simply give us a call or
fill out the convenient
online contact form.