The SEC suspends stocks under TWO categories. The easiest, most cost effective is to suspend a stock for failure to file Financials. Even if a stock is suspected of nefarious activities that broach into Securities Violations the SEC can take the simplest action by forcing the company to immediately file all delinquent, unaudited Financials to OTC Markets. A company that has not filed any Financials for a few years is not likely to file Financials within the few weeks time constraints imposed by the SEC!!
In most instances a suspended stock that fails to immediately file Financials is REVOKED on DEFAULT reasons within a few weeks after the Suspension has ended.
The second category is for the SEC to suspend a stock for alleged Securities Violations which may take years to bring into litigation. Those stocks will NOT BE REVOKED until all SEC civil litigations have concluded.
In ALL instances, after the TEN DAY Suspension expires the stock is re-instated to trade but the stock is dispatched to the Grey Sheets where Market Makers are forbidden to make a market for the stock. That means there are no bids, no asks, and no display of how many shares are for buy or sell. In many instances Brokers will not permit any opening positions, ie BUY ORDERS, of a formerly Suspended stock that now trades on the Grey Sheets, so it is strongly advised to contact your Broker to learn what their policies are. Brokers cannot refuse SELL orders but they can refuse BUY orders which may make it extremely difficult to sell shares.
Once a stock is REVOKED no-one can buy or sell shares....no exceptions.
Persons who argue that a revoked stock will trade again or that there will be any type of compensation for revoked shares are WRONG in every context. The only recourse would be to file a civil suit for personal losses against the company, but the chances for dollar recovery are infinitesimally UNLIKELY!
To bite the worm of incite is to bite the HOOK of the antagonist . They win .
