USA Recycling Industries, Inc. (USRI)

[lowman]

You ever hear of a CD? It's where a company gets a loan (usually from an investment banker) backed by shares, which are usually converted at a discount. The IB then turns around and dumps them on the market. There are often no time restrictions. That's how the majority of pennystocks raise their capital. So to say they can't issue free trading shares is a misnomer. They can also issue free trading shares for services rendered. Define 'services' and you'll find CEOs giving shares to their family & friends for the simplest of tasks. Consulting is the most common. A CEO asks his brother if something is a good idea and he gives his brother shares for his opinion. That's called Consulting. You'll find it in nearly every 10-Q.

You really shouldn't be so naive to the numerous ways companies can screw over investors.