The Golden Lounge

[stock_rancher]

"The call confirms an insider sold, and the company made this mess, as we already knew. #msg-6726840"

If there were only 11 shares that were to turn into 33,000,000. The other insiders will opt for the 1 share from the insider trading with their 10 protected. The Brokerage/TA made 3 million available to the insider to sell. Only a tops of 400,000 were traded. In conclusion, the company will say that is where insider liabilty stands(400k of 33m). The TA/Broker comes in after this point for liability. If the TA/Broker never would have made the shares available, there would not be this situation. The 400k are due bills of 3,000,000 shares post-split for each share bought prior to Monday the 23rd ex date ( must have bought no later than the Friday the 20th). 400k x 3m = 1,200,000,000,000 or 1.2 Trillion shares due max. So in theory, the TA/Brokerage would be liable for the blunder, the insider has no way to cover and the insider will blame the TA/Brokerage for the screw up...... that's where the insurance comes in. In this case a .0001 tender offer is valid for those 400k forward split to 1.2T