"The Grey Market"
The Grey Market reminds me of the movie "The Grey" with Liam Neeson. Mainly, because
like in the movie, we all get eaten by the wolves in the end. Somebody should write a book called "The Wolves of Wall Street" to properly describe the situation in our most beloved and hated of all
economic institutions.
Overtime, I have become highly skeptical of the black sheep of OTC markets like the "pinks" and
the "grey". The main reason for this is the fact that insiders can use the lack of information on
their stocks to their advantage; which in turn becomes a disadvantage to the little guys. For
instance, say in the case of IMC where for all practical purposes its main use looks like an
eventual shell play. The strategy for the big boys that own this stock like Citi, some principals
of Goldman Sacs, and other notables would be to try and discourage anyone from buying this
stock, researching this stock, and then actually thwarting anybody who owns it from trading it.
This was the case with my broker who locked me out from buying and selling this stock in the
last six years because they claim they do not have a transfer agent for it. Which is apparently the case but some trust or bank must have stepped in to handle all the trading over the years. And, it is my understanding that other brokerage houses have been buying and selling this stock all along
and do not seem to have a problem with a transfer agent.
Then "the powers that be" have the audacity to use their very own voluntary use of the pink sheets
that require no information and may actually hide information... to have them relegated to the "grey sheets" because they do not provide any information? This slight of hand causes a situation
where virtually no one but themselves can trade and profit from any future use of the stock. What really gets me is my broker is telling me that they will simply do a notice of an "Adjust Position" to indicate a removal of my stock. It is not reported to the IRS therefore I can not use it for tax purposes and since it is non-transferable I cannot receive stock certificates. They go onto say, however, in classic broker double-speak, but, if the issuer of the security reopens it transfer books we may attempt to have your position returned to your account.
Now, if they did spin off Imc from citigroup for whatever purpose, what do you think the chances
are that they would return the stock to my account. I would hazard a guess and say slim to none.
The main reason I originally invested in Imcc was for extreme leverage like options in a lottery type atmosphere. However, if that possibility can be manipulated or thwarted by them simply saying we have no transfer agent or it is no longer traded and banished to the 'grey sheets"...well not only are
you screwed but the implication could be that they could do that to any stock regardless of price.
Lastly, I am not without resources and at at the very least I will get down to the legality of all this
along with contacting all the appropriate regulatory agencies. It appears to me that they cannot have it both ways. If this is going to be an active ongoing solvent stock then they have to honour those original stock holders..if not it looks like a simple confiscation with a stacked deck..and if you cannot trust a supposedly reputable broker then the whole wall street market is circumspect..which this decade is certainly proving to be the case..
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