Tuesday, July 02, 2002 2:40:24 PM
Everyone - I always said investing in stocks is a learning experience.
Today's lesson:
Today I spoke with an attorney from the SEC Chief Council's Office, Division of Corporation Finance in DC. Yes, after a couple of days playing phone tag we finally touched base. He stated a Transfer Agent should not provide the type of information I was looking for, that being restricted and unrestricted share totals. When I explained that in the past I've called them and received that information on other stocks he was surprised. I followed that up with the fact that that information resides in the quarterly and annuals reports so what harm is being done? He then gave me a lesson on the difference between "Outstanding shares", "public float" and "restricted" and "unrestricted" shares. He further stated that according to the 33 and 34 acts disclosure of that information need only be made in the quarterly and annual reports. In other words we as shareholders or anyone else for that matter do not have a right to ask for it. Surprise, surprise. And here some of us thought TM was stalling and or playing games. Egg on our face. Of course that doesn't explain why the attorney was willing to go ask for that information, but might explain why he hasn't been given it yet. I'll withdraw my request for that information.
Essentially each quarterly report should contain the TSO, while the annual report (10-K or in our case 10-KSB) shuld also have the float.
TSO = total shares outstanding; the number of shares of capital stock that have been issued and are in public hands.
Public float is the amount of common stock of a public company that is actually available for active trading in the public market. The calculation of a company's public float normally excludes securities held by officers, directors and affiliates of a company since officers and directors generally are not active traders. The public float also excludes securities that cannot be sold by agreement with the security holder. The smaller the public float, the less liquidity is available to someone seeking to sell stock. Many institutional investors (i.e., pension funds and mutual funds that buy large amounts of securities) will not purchase securities in a company whose public float is below a minimum size because the institutional investor will lack the ability to easily and quickly sell large amounts of securities.
Restricted stock: Insider holdings that are under some other kind of sales restriction. Restricted stock must be traded in compliance with special SEC regulations. These restrictions result from merger and acquisition activity, underwriting activity and affiliate ownership. Restricted stock cannot be sold without registration under the Securities Act of 1933 or through a special exemption. ie. form 144
So I suppose we wait till the next report. What a joyous exercise in futility this was. LOL
The best weapon against "fear" is "facts"!!
Today's lesson:
Today I spoke with an attorney from the SEC Chief Council's Office, Division of Corporation Finance in DC. Yes, after a couple of days playing phone tag we finally touched base. He stated a Transfer Agent should not provide the type of information I was looking for, that being restricted and unrestricted share totals. When I explained that in the past I've called them and received that information on other stocks he was surprised. I followed that up with the fact that that information resides in the quarterly and annuals reports so what harm is being done? He then gave me a lesson on the difference between "Outstanding shares", "public float" and "restricted" and "unrestricted" shares. He further stated that according to the 33 and 34 acts disclosure of that information need only be made in the quarterly and annual reports. In other words we as shareholders or anyone else for that matter do not have a right to ask for it. Surprise, surprise. And here some of us thought TM was stalling and or playing games. Egg on our face. Of course that doesn't explain why the attorney was willing to go ask for that information, but might explain why he hasn't been given it yet. I'll withdraw my request for that information.
Essentially each quarterly report should contain the TSO, while the annual report (10-K or in our case 10-KSB) shuld also have the float.
TSO = total shares outstanding; the number of shares of capital stock that have been issued and are in public hands.
Public float is the amount of common stock of a public company that is actually available for active trading in the public market. The calculation of a company's public float normally excludes securities held by officers, directors and affiliates of a company since officers and directors generally are not active traders. The public float also excludes securities that cannot be sold by agreement with the security holder. The smaller the public float, the less liquidity is available to someone seeking to sell stock. Many institutional investors (i.e., pension funds and mutual funds that buy large amounts of securities) will not purchase securities in a company whose public float is below a minimum size because the institutional investor will lack the ability to easily and quickly sell large amounts of securities.
Restricted stock: Insider holdings that are under some other kind of sales restriction. Restricted stock must be traded in compliance with special SEC regulations. These restrictions result from merger and acquisition activity, underwriting activity and affiliate ownership. Restricted stock cannot be sold without registration under the Securities Act of 1933 or through a special exemption. ie. form 144
So I suppose we wait till the next report. What a joyous exercise in futility this was. LOL
The best weapon against "fear" is "facts"!!
The best weapon against "fear" is "facts"!!
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