I am considering starting a new clearinghouse to specialize in the sale of "penny stocks". Penny stocks are described by the SEC as stocks trading for under $5.00, but we find that stocks trading under $1.00 are the impetus of this post.
Since FINRA adopted rules years ago that scared the crap out of brokers trading in penny stocks, we small shareholders have been literally unable to deposit our legitimate stocks anywhere except with one or two brokerages/clearinghouses that charge an arm and a leg and provide comparatively poor service.
It is fundamentally unfair to punish the masses for what FINRA may consider to be a hazard with some low-priced stocks manipulated by unscrupulous and crooked operators/issuers. If FINRA wants to stop the problem, they should go after the perpetrators rather than punishing EVERYONE for the offense of the FEW!
As the retired CEO of a full-reporting, clean public company for ten years, I am now at the juncture that I cannot even deposit any of my hard-earned stocks with any legitimate brokerage house. Further, to deposit and trade them at a clearinghouse that will accept them, I am forced to pay upwards to $1,000 for vetting, more for an opinion of counsel, exorbitant trading fees including per transaction fees), and slow manual trading services, and it takes as long as two to three months to get cleared to sell...and that is with pristine stocks that have a clear background from issuance to sale. It is nothing short of a travesty, if not a very bad joke.
Holders of low-priced, but legitimate, registered shares should be entitled to deposit and sell their shares in a fair, real time environment. I contacted the top ten online brokers and tried to deposit my free-trading, book entry (DWAC) shares. Several did an initial look and agreed to accept them for deposit. I would open an account and deposit $1,000 cash or more, and prepare to make the deposit of securities. At that juncture they all changed their mind and said that they could not accept the low-volume, low priced stocks. Very frustrating, and in my humble opinion, the whole thing stinks to high Heaven! Small shareholders of legitimate securities are now precluded from having the opportunity to trade their shares. It is nothing short of discrimination, restraint of trade, and conspiracy to deprive us of our fundamental rights.
I intend to open such a new clearinghouse to accommodate such activities. And we will be prepared to launch legal affronts to FINRA and the SEC if the fail to give us an opportunity to fairly represent the many millions of shareholders that have been damaged by their actions.
I am seeking interest from shareholders of lower-priced "penny stocks", being anything under $5 but more specifically shares normally trading anywhere under $1, that have run into this same problem.
Would you support placing your shares with the new firm for reasonable trading fees?
Would you be interested as a financial participant in the new clearinghouse?
Your thoughts?
This is something that is MOST URGENTLY NEEDED, and carries the potential of a very good profit/return to the founders and operators while presenting a very fair and favorable medium for the shareholders.
Please voice your thoughts on this board, or contact me direct at publicceocontact@gmail.com
Thank you!
Steve Sample
Small Shareholders Rights
