At what point does a stock get halted for Trading?
There is a stock on the TSE index, TSE:KOM
That stock is currently at 1.5 cents (yes cents, not dollars!).
At what point can a stock get halted for trading for being too low?
Also, what type of stock is that? Small cap stock?
Is a stock at 1.5 cents (for example) a bad sign for a stock?
Stocks like that get moved from NASDAQ, for example, to bulletin board stocks (pink sheets). They can trade for years, but it is difficult to get information on them, and there is virtually no reporting requirements once a stock hits the pink sheets.
You cannot use any margin money to buy them, in fact, any stock below $5 cannot be bought on margin, which is why many stocks that fall below $5 are sold by investors who either have to come up with the margin they used to buy them, or sell.
Halting on News Pending is done on all stocks, but that is not related to price, it’s related to maintaining an orderly market.
Trading Low Cap Stocks: Five & Dime 2009-07-09
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