Southcorp Capital Inc (STHC)

[Mr. Bill]

Yes but only Ameritrade and a few odd brokers got "credits" for GVRP. When you talked with AT they said well, it is like an IOU, if the check clears you have no problems but if it doesnt then it becomes your problem and you are responsible. If the FS is cancelled then you are the one on the hook.

Ultimately I suspect that may have been the case but the broker is next in line and there was no way they could cover either.

Ameritrade had huge problems because the majority of the 19 BILLION shares traded (in terms of shares sold) on a stock with an OS of 33M were through them.

The question is: how is it fair to shareholders who either were never able to receive their shares or those who believed the rules would be enforced and did not sell the AT IOUs? A broker should not be able to deliver credits to an account and tell you if you sell and all goes well you are good to go.

Once a broker places shares into an account it should be a done deal. They should not be able to revisit the situation and make shares become restricted. They should not be able to waffle on whether the credits are actually shares. When I pressed AT they stated the shares in my account were really an IOU and they had only received the shares electronically and were waiting formal delivery of the shares. [if you recall the company later claimed they were not obligated to deliver the shares but the NASD disagreed and forced their hand. Then all of the corruption began]

Why is it in todays environment a broker claims they have NO RESPONSIBILITIES and all of the risk is yours because they are a LOW TRADE broker?

The situation you are describing with a unrestricted share is similar but slightly different than delivery of the shares. If you recall with GVRP plenty of people were unhappy that they had not received their shares and yet folks at ATurd had.

Why does the regulators not enact a new rule which addresses the delivery of FS/RS shares and sets an even playing field for trading of a stock when a split occurs. Why should transfer agents not be required to deliver the stock within say ONE business day and the stock have a "day off" when it does not trade and then open the next day with all shares distributed? Why is an uneven playing field not only allowed to exist but encouraged to exist?