When and why should trading be suspended?
Suspending trading is a very common and normal practice on exchanges across the world. One of the most frequently used rationales why a company’s trading will be suspended on Funderbeam is in case a company is looking to have a new fundraising round or ahead of any significant corporate event or expected publication of significant news.
Funderbeam is a marketplace for private companies, and the suspension is put in place to ensure all investors have access to the same information. The same logic applies as with any other regulated exchange. This protection is enabled during significant changes or announcements by companies, such as a new funding round or an Annual General Meeting (AGM).
When is Trading Suspended?
Trading is suspended before price impacting announcements, AGM or ad hoc shareholder meetings which may or may not come with any prior warning. Trading may be suspended because of events impacting companies from outside, like governmental or regulatory decisions etc. Prior to any official announcement, Funderbeam will suspend trading of the company in question and update the platform with the expected trading recommencement date and time.
Suspended trading during a new funding round
During a funding round, trading may be suspended and recommenced multiple times as these processes can sometimes take many months. Funderbeam has a 24-hour suspension policy to ensure all investors have the opportunity to read through the new information prior to trading being opened once again.
Please visit Funderbeam Markets Marketplace Rules – Suspension of Trading section – for more details.