Fund circuit breaker refers to the automatic trading suspension mechanism of funds. When the fluctuation of the fund reaches the prescribed circuit breaker point, the exchange adopts measures to suspend trading in order to control risks. However, the circuit breaker mechanism is not often used in the fund market, mainly because once fund transactions are suspended, there will be pressure on the fund to cope with redemption funds. The circuit breaker mechanism is mainly used in futures or stock markets.
Suspension is a professional term in stocks, which refers to the temporary suspension of stock trading. Therefore, if you buy before the suspension, you will not be able to trade during the suspension period.
Reason for suspension of trading
The reason for suspension of trading may be changes in company executives and changes in equity, some of which are good things and some of which are bad ones
Stock trading is suspended
1. When the stock is notified of major measures that will affect the stock price, it takes the initiative to apply for a trading halt and wait for the announcement of the measures to open the market to ensure market fairness;
2. When the company suffers serious losses and faces bankruptcy Trading will be forced to be suspended by the exchange.
Second, there are the following reasons for the suspension of stocks:
A company convenes a shareholders' meeting.
2. The company’s stock fluctuates abnormally.
3 The company suddenly announced major news.
Four. The company was announced to cease trading due to performance issues.
5. The company participates in the share reform.
What does suspension mean?
When something happens and the stock price of a listed company's stock rises or falls significantly, the company may need to temporarily suspend stock trading, so this operation is called a stock suspension. During this period, investors whether buying or selling are unable to trade, and everyone can only wait for the listed company to open again. Under normal circumstances, there are two types of stock suspensions: active and passive. Active is when a listed company applies to the exchange to ensure market fairness. Passivity is caused by some rules or delisting.
Therefore, there are three reasons why stocks are suspended from trading:
1. When a listed company announces important information, such as annual report, capital increase and share expansion, distribution plan, major Trading will be suspended during acquisitions, mergers, investments, and equity changes to ensure market fairness.
2 When the securities regulatory authorities believe that the listed company must clarify and announce issues that have a significant impact on the company.
3 When a listed company is suspected of violating regulations and needs to be investigated, the length of trading suspension will be determined based on the circumstances.
In general, the stock prices of listed companies with trading suspensions rise and fall due to uncertain news, so it plays a very important role in market fairness.