chapter 11 part 5

Question 1

what 3 actions can exchanges do other than delisting a security?

Answer 1

1. delayed opening - because of high volume they stop trading to make sure there is order and fairness
2. halt in trading - can stop trading if significant news is out and needs to be sent out
3. suspension in trading - if the company no longer meets requirements of exchange they will halt trading until rectified.

Question 2

name 4 reasons why a company can get delisted from an exchange?

Answer 2

1. delisted security no longer exists or is going through a merger
2. the company is without assets or is bankrupt
3. the public distribution of a security has dwindled to a low level
4. the company failed to comply with listing agreement of exchange