Replies to post #82741 on 8000 Incorporated (EIGH)

[loanranger]

For trading purposes a suspension and a halt have the same effect.....you can't trade. In fact, a suspension is just a specific kind of halt.

At the link you will find the halt codes that apply to the OTC:
http://otcbb.com/news/tradehalt/haltcodes.stm

The most common is the 10 day SEC suspension as imposed on EIGH. The governing rule says "If in its opinion the public interest and the protection of investors so require, the Commission is authorized by order--
summarily to suspend trading in any security (other than an exempted security) for a period not exceeding 10 business days". Typically it results from the belief by the SEC that some action/actions taken by a company have resulted in "a lack of current and accurate information concerning the securities" of the company. It's never good news for shareholders.

The other, less common, action is a halt of trading in an OTC stock imposed by FINRA....what is usually meant when the term "halt" is used. This is imposed when "an extraordinary event has occurred or is ongoing" and that event can be bad or good.....an example might be the acceptance or rejection of a blockbuster drug by the FDA. Typically this type of halt is brief, just allowing for a broader dissemination of the news and a more settled market for the shares.

Hope this helps.