Hannover House Inc (HHSE)

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One of the reasons why a clearing firm would contact the TA is to determine if a client account is nearing 10% ownership. If the client account nears the company's issued and outstanding at 10% as supplied by the issuer, the clearing firm would contact the TA to ensure the client has not exceeded the 10%.

Reason why, even though a client buys free trading stock in the open market, once the client exceeds 10%, the client is an affiliate. Then the client account must be treated as such, and has restrictions.