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 has ended.
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.