More than 1 million shares were traded yesterday.
The shares fell to 10c, from 50c, before their suspension.
They have fallen from a record high of $2.86 in May 2007.
At the same time, pressure increased for the company to make a further announcement about its future.
ABN Amro Craigs broker Chris Timms believes the company is being proactive in investigating the possibility of reaching a moratorium with its debenture holders.
Under the prospective moratorium, the company would seek the suspension of its obligation to make payments to debenture holders and give it time to restructure to lessen any liquidity pressures, he said.
Dominion, by July 15, must make an interest payment of $940,000 to capital note holders but the company goes ex-dividend on July 2.
Mr Timms expected an announcement before the end of the month.
The company said on Tuesday it was considering a moratorium on payments to debenture holders after becoming concerned about the liquidity of its two subsidiaries, Dominion Finance Group and North South Finance Ltd.
Mr Timms said Dominion continued to trade profitably and it had several substantial shareholders on its books, including South Canterbury Finance and its chairman, Alan Hubbard.
"At this stage, we are advising clients to hold tight until this process runs its course," he said.
At March 31, debenture holders were owed $276 million, down from $350 million a year earlier, NZPA reported.
The board had begun talks with bankers, auditors and trustees to explore the prospect of a moratorium, chief executive Paul Cropp said on Tuesday.
Liquidity problems were a reflection of the global credit crisis on investor confidence, and the inability of DFG and NSFL's borrowing clients to refinance or repay debts, Mr Cropp said.
Dominion Finance continued to trade profitably, with net profit after tax for the months of April and May of $2.61 million.
Reinvestment rates had halved to about 20% in April after industry counterpart Lombard Finance hit trouble.
More than 20 finance companies have failed in the past two years, in part reflecting the effects of a global credit crunch.
Dominion Finance debentures funded about 60% of total assets, with the balance made up of equity (11%), capital notes (9%) and banking funding facilities (20%).
The Stock Exchange is investigating whether Dominion Finance breached continuous disclosure rules about its situation before two of its subsidiaries fell into strife.
NZX's acting head of market supervision, Simon McArley, told Radio New Zealand yesterday he would be talking with the Securities Commission and expected its investigation would take a week.
He agreed it had been a short period between company assurances that the business was viable and its present troubles.
There have also been questions raised over the timing of Dominion Finance's latest attempt to raise more cash.
In a letter dated May 23 it offered investors an "exclusive special" interest rate for secured first ranking debentures at between 10.75% and 11% for up to 18 months.
The company's letter said it was continuing to operate its business as usual and was making good profits.
The directors and possibly the trustee, Perpetual Trustee, could be liable under the Securities Law if the company attempted to raise money when they knew the company was in trouble.
