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Why couldn’t the SEC forewarn investors th

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Post# of 14350
Posted On: 11/24/2012 4:51:18 PM
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Posted By: Homeworks



Why couldn’t the SEC forewarn investors that it was about to suspend trading in a stock?



The SEC cannot announce that it’s working on a suspension. We conduct this work confidentially to maintain the effectiveness of any related investigation we may be conducting. Confidentiality also protects a company and its shareholders if the SEC ultimately decides not to issue a trading suspension. The SEC is mindful of the seriousness of suspensions, and carefully considers whether it is in the public interest and for the protection of investors to order a trading suspension.


http://www.sec.gov/investor/alerts/tradingsuspensions.pdf




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