When the SEC suspends trading....?

Kastro_316

Kastro_316

Let's say a stock is trading at $15, and the SEC suspends all trading, and when the suspension is lifted and the stock is now worth $3, would your stop loss stop it before it hit $3?
 
As far as I know its like a stock that gaps down at the open. Your stop would trigger but it would go as a market order to sell at $3. I might be wrong but I'm pretty sure this is the case.

-Jamaal
 
XYZ trading at $15
Stop Loss at $14
XYZ halts trading at $15
XYZ opens at $3
Your Stop Loss triggers, you sell at $3

Stop Loss doesn't protect you from gaps or trading halts so you need to watch how much percent of capital you put in a single stock.
 
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