What does stock suspension mean?

Stock suspension in finance refers to a temporary halt or restriction placed on trading of a particular stock by a stock exchange or regulatory body. This suspension may be imposed for various reasons, such as pending material news release, investigation of potential market manipulation, financial irregularities, or other factors that may impact the trading of the stock. During a stock suspension, investors are unable to buy or sell the affected stock until the suspension is lifted. This is done to protect investors and maintain the integrity and stability of the financial markets. Stock suspension is typically enforced to prevent any potential market disruptions or unfair advantage for some investors over others. Once the reason for the suspension is resolved or the investigation is completed, the stock is usually reinstated for trading. It is important for investors to stay informed about any stock suspensions that may affect their investment decisions and to understand the implications of such suspensions on their portfolios. Additionally, it is crucial for companies to comply with disclosure requirements and regulations to avoid potential stock suspensions and maintain investor confidence.