Why is trading closed?
You may sometimes see a syndicate that is not available for trading. This could be because they have not signed the admissions agreement to join the Marketplace or may be temporarily not tradable due to ongoing events.
In the event of locked trading, you will see a small lock icon instead of a link to trade. Unavailable companies will not be displayed.
There are a few reasons why trading could be unavailable:
- Potentially imbalance of information about the company
Companies may from time to time be preparing to announce news that could impact the price or valuation on the Marketplace. Trading will be suspended in the case that some investors may know more information before it is public knowledge and this would create an unfair advantage. As a result, trading is suspended until the information has been announced for all investors.
- The company is raising additional capital on Funderbeam
At a later stage, companies may decide to raise funds again, and as this will have material affect on the price on the Marketplace, trading will be suspended for the duration of their latest funding round.
- Material Announcement
Companies may announce news that could impact the Marketplace activity. Trading will be suspended to allow for investors to have the chance to read through and understand the information before trading again. This timed restriction in trading is to offer a fair and balanced Marketplace.
You can read more about why Funderbeam may decide to suspend trading in the Marketplace Rules.
No matter what the reason for trading not being available, you will usually be able to find information on the investment offer or company page, and if not, you can always ask a question to the founders or the lead investor in the discussion tab.