Reasons for stopping a share
1- 20% fluctuation
If the closing price of a share fluctuates more than 20% during 5 consecutive working days, the share is closed.
This 20% fluctuation does not matter if it is in the direction of price growth or price decline, in both cases, the stock symbol will be stopped for 60 minutes.
In 60 minutes, the stock will be kept in the order status and then stock trading will resume.
In the meantime, according to the new law of the Stock Exchange Organization, the disclosure of the clarification notice regarding the share price fluctuation by the publisher is optional.
This law will be implemented for base market companies (b) in case of 40% fluctuation.
2- 50% fluctuation
If the closing price of a share fluctuates more than 50% positive or negative during 15 consecutive working days, share trading will be stopped.
In this case, the company must hold an information conference.
The share symbol will be discovered and reopened at most 2 business days after the stop with the limit of the fluctuation range.
Also, this law will be implemented for companies active in the base market (b) in case of 60% fluctuation.
3- Disclosure of important information
If a company publishes an announcement on the Kodal website (publishers’ notification system) that is in the category of disclosure of important information, its symbol will be automatically closed immediately and its trading will be stopped.
But opening the share is different depending on whether the important information is from group (a) or group (b).
If the information disclosure is from group (A), the share symbol will be reopened on the next working day with the discovery of the price without the limitation of the fluctuation range.
But if it is from group (b), according to the time of information release, if there is an opportunity, the share symbol will be discovered and reopened on the same day or at the latest on the next working day with the limitation of the fluctuation range.
4- Annual ordinary general assembly
Annual General Assembly is held once a year.
The company has a deadline of 4 months after the end of its financial year to hold this assembly.
This assembly is formed for the purpose of approving the financial statements and dividing the cash profit among the shareholders.
It is obvious that the distribution of cash profit has no meaning for a company that has made a loss in its financial year and the cash profit (DPS) includes companies that have made a profit at the end of their financial year.
In this case, the share symbol will be closed 2 working days before the assembly and may remain closed up to 5 working days after the assembly.
Also, the reopening of the share symbol will be in the form of discovering the price and without limiting the scope of the fluctuation.
But if the company has distributed cash dividends, the share price will decrease by the amount of cash dividends (DPS) at the time of reopening.
If the Annual General Assembly is held and the subject is not the approval of financial statements and profit distribution, the reopening and discovery of its price will be done with the limitation of the fluctuation range.
5- Extraordinary General Assembly
The extraordinary general assembly has different reasons, the most common of which is capital change.
In this case, share trading will be stopped 2 working days before the assembly and will be reopened at most 5 working days after the assembly.
If the extraordinary general meeting is closed due to capital increase, after reopening, in addition to the fact that the share price will decrease according to the amount of capital increase, it will be reopened at the time of discovery of the price without limitation of the fluctuation range.
Otherwise, reopening the share and discovering the price will be limited by the range of fluctuation.