TOP Financial Group (NASDAQ:TOP) stock is in focus after the Nasdaq decided to suspend shares from May 12 to May 25. Under “Reason Codes,” the exchange provided H10, T1 and T3. However, it is now May 26 and shares of TOP stock are still unable to be traded. On May 11, the U.S. Securities and Exchange Commission (SEC) explained:
“The Commission temporarily suspended trading in the securities of TOP because of recent, unusual, and unexplained market activity raising concerns regarding the adequacy and accuracy of publicly-available information, in light of disclosures made concerning TOP’s financial condition and scope of operations.”
The SEC is absolutely correct in its assessment of unusual market activity. On April 28, TOP stock peaked to as high as $256.44 after trading at $7 just a few days earlier. The price activity of the Hong Kong-based broker follows the unexplainable activity of other Hong Kong stocks, such as AMTD Digital (NYSE:HKD) and Magic Empire Global (NASDAQ:MEGL).
In response to the price action, Top Financial released a one-sentence statement:
“While it is the Company’s practice not to comment on any stock movement, we believe it is important to note that we caution investors and all other persons to rely solely on statements and filings with the United States Securities and Exchange Commission issued by the Company itself or its authorized representatives.”
Shareholders Still Unable to Trade TOP Stock
Top Financial’s statement was not very reassuring for shareholders, as the company basically pivoted responsibility to the SEC. In addition, Top did not provide any context or what information it has regarding the unusual price action.
Let’s jump back to the reason codes attributable to the halt. First, H10 just means that trading of the stock has been suspended. Next, T1 means that trading has been halted “pending the release of material news.” Lastly, T3 means that either the significant news has been properly dispersed, or that Nasdaq has come to a conclusion that the factor(s) contributing to the unusual activity are no longer present or initially not attributable to the unusual activity.
Reason code T3 should mean that shares of TOP stock are tradable again. However, shares still seem to be halted at the time of this writing. Meanwhile, the SEC has not yet provided any updates.
On the date of publication, Eddie Pan did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.