Investopedia explains 'Suspended Trading' The SEC has the authority to suspend the trading of a security for up to 10 trading days to protect investors. The SEC has this ability under Section 12(k) of the Securities Exchange Act of 1934. The SEC will make the decision to do this based on an investigation and will then issue a press release detailing the reason for the suspension. The most common reason for suspension is due to a lack of publicly available, relevant and current financial information.
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