When I have questioned TDA about the securities they restrict by saying "opening transactions for this security are not accepted," this is what they sent me. EXPH has been more open than most pinks. By saying this, restricting EXPH when they didn't before, and applying these terms to EXPH, it suggests to me, in my opinion, that TDA may know something which is not publicly disclosed, which is like reverse inside information, and it is extremely annoying to me.
"TD AMERITRADE has made the business decision to not allow opening transactions on this security. While we cannot go into the specific reasons for this restriction, we strongly believe it's in the best interests of our clients and our firm. You can still place closing or sale transactions. While all trading of securities involves risk, sometimes the level of risk associated with a specific security is escalated beyond what is considered reasonable to TD AMERITRADE.
Some of the reasons a stock may be restricted to Closing Transactions only include:
*Corporate Actions in which a lack of information, confusing terms, or unclear objectives may be involved. All corporate actions should be transparent as to objectives.
*Apparent or possible fraudulent activity by a company or it's officers, with potentially manipulative actions to affect a stock price.
*Frequent unsubstantiated press releases in an attempt to affect the stock's price.
Deceptive or contradictory statements regarding past or projected performance.
*Corporate Identity Theft
*Valid companies associated with 3rd parties (i.e. transfer agents, consultants, etc) that have shown a predisposition to any of the above activities.
*Companies known or suspected to be involved in Money Laundering activity
Some of the criteria NOT used to make this decision include:
*Stock price of this security
*Positions of our clients and the firm
TD AMERITRADE does not participate in the trading of non-listed securities in its own account for the purpose of making a profit.
Unfortunately I cannot go into exact detail with you why this decision was made. I can tell you that we take the decision to restrict trading very seriously. If you have any further questions or concerns please respond to this e-mail.
Thank you for contacting TD AMERITRADE and allowing us to assist you. We appreciate your business.
Best regards,
Apex Client Services, TD AMERITRADE
Division of TD AMERITRADE, Inc."
My posts are my opinion. Try not to be influenced by anything you read on any message board website unless you can confirm it.
