What should I do with the money of investors whose stocks are suspended?

Stock suspension refers to the decision of the stock exchange to suspend trading after the stock price continues to rise and fall due to certain activities or news, and then start trading after returning to normal. Then, the stock was suspended. What should investors do with the money?

Here we need to deal with its funds according to different reasons for suspension:

First kind

Reason: If a listed company has important information such as investment and equity changes, major mergers and acquisitions, announcement of distribution plans, capital increase and share expansion, convening of shareholders' meeting, announcement of interim results report, announcement of annual report, etc., it will be suspended;

Handling: In this case, investors only need to wait patiently for the trading operation after the stock resumes trading.

The second type

Reasons: The national regulatory authorities believe that listed companies need to make an announcement to clarify the significant impact on the company;

Handling: In general, there may be a relatively large decline after the resumption of trading, and investors should sell it immediately after the opening to reduce losses.

The third kind

Reason: The listed company is suspected of violating the rules, and the relevant state departments investigate it. The length of the suspension depends on the specific situation;

Handling: In this case, investors should refer to the trend of the market and the reasons for the suspension of trading to operate the stock correctly to reduce losses.

The following are several temporary suspension situations:

First, the first day of listing is higher than the opening price 10%, and the exchange will temporarily suspend trading for 30 minutes;

2. If the stock rises or falls abnormally for several days, the exchange will also temporarily suspend trading;

Third, when there is a technical failure, the exchange will suspend trading.

In view of the stock suspension period, generally speaking, we should focus on the following aspects:

I. Announcement

Before the company suspends trading, it needs to issue a suspension announcement, which will explain the reasons for suspension. In case of abnormal stock price fluctuation, non-public pricing issuance or major asset restructuring, it is necessary to issue announcements regularly to explain the latest situation. We can analyze the fundamentals of the company according to these situations and make different analysis and judgments.

Second, the market trend

If the market rises sharply during the suspension period, the stock usually rises sharply afterwards, which is called compensatory growth. The same decline in the market will also make up for the decline after the resumption of trading, especially for stocks that resume trading at a high level. If it is a GEM stock, the GEM index will be more valuable.

Third, industry trends

In addition to the market, the industry in which the stock is located also has a great influence on the stock trend. If the industry in which the stock is located is very prosperous during the stock suspension period, and all the stocks in the industry rise, then the stock will make up for the increase after the resumption of trading, which depends on the stock fundamentals and stock elasticity.

To sum up, the stock suspension should be analyzed according to the reasons, and various indexes and industries during the suspension period will also have an impact, so it should be analyzed from many aspects.