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The Term of Stock Suspend Depends on the Type of Violation

The period of suspending shares is often considered by investors of a company. Especially for long term investment.

Investment activities can experience various things, including good to bad conditions.

As with the term suspended stock that often appears.

This condition may occur if the Indonesia Stock Exchange (IDX) has required it for a certain company.

Maybe some investors have often heard of suspended stocks.

If you still don’t understand it, you can find out what caused the stock suspension period to occur.

To get an understanding of this condition, you can refer to the reviews that we present below.

Term of Suspension of Shares from the Exchange

A company can be suspended from the stock exchange due to several factors.

Actually, issuers and investors cannot know how long the time period is.

It all depends on the stock exchange that controls these conditions.

All also depends on the violations that the company itself commits.

If the violation committed by the company is classified as minor, it is usually suspended in a matter of days.

However, if the violation is serious and serious, it can take months or even years.

The time period can be according to the size of the violation that the company commits.

Everything depends on the decision of the IDX.

Sanctions Related to Suspend

Stock suspension is a temporary suspension of share buying and selling transaction activities.

When an issuer is suspended, it can no longer trade on the market or the stock is frozen/suspended.

When the stock exchange decides to suspend an issuer, it becomes a form of sanction.

Because the issuer has committed a violation.

In order to fulfill the IDX’s policies smoothly, a company that is suspended will be dealt with firmly.

This condition already has rules that apply.

There are several levels of sanctions that the IDX provides.

The level of sanctions is also in accordance with the violations that the company has committed.

Sanctions can be in the form of reprimands, warnings, temporary bans on buying and selling, and even worse, the abolition of exchange membership.

If this happens, the company should be more careful.

Do not let the light sanctions actually get heavier.

If it is like that, the period of suspension of new shares can be determined.

Causes of Issuers Affected by Suspension

Actually, any condition of an investment has risks and benefits.

As with the issuer’s risk of being suspended, which can occur due to mistakes made.

The causes for issuers to be suspended are quite varied.

It could be because the stock price is moving unnaturally aggressively.

In addition, there are policies that are closely related to the value of shares, companies that are constrained by debt and do not end in settlement.

In addition, stocks that have poor performance and reputation are also at risk of being suspended.

However, the period of stock suspension is certainly not the same in all cases.

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