That’s correct, DJ. The claim is Completely False. Since I tend to detail penny for the lot trades, It’s funny to see the claim that it was merely postulation . Since postulate means “it’s assumed as true as the basis for reasoning, discussion” - that would be profoundly False. It’s not “assuming” anything. These are still the FACTS as stated @ FINRA.Org.
A firm purchases the shares to remove the position from the customer’s account and to enable the customer to claim a capital loss for tax purposes.The purchase price typically is nominal and set solely for purposes of liquidating the position. In some instances, it may not be a per share price, but may be sold, for example, for one penny or one dollar for the entire lot. Hence, these sales sometimes are referred to as “penny for the lot” transactions. This is knowledge that all traders should know, it’s important part of trading OTC stocks.
I don’t suggest it’s retail due to the Fact FINRA notes that the OTC Reporting Facility can accommodate six decimal places for purposes of reporting a per share price.
These nonsensical claims are Way Too much Misinformation, not enough FACTS. SMH
