SurgLine International Inc (SGLN)

[mcgigi]

Questions and answers from that link. Good explanations!

You had mentioned that the change to trade for trade status is not done to protect the share structure. Wouldn't this form of trade system protect the company from massive shorting or a takeover of sorts?



Yes, it is surely not to protect the share structure. But shifting any security to trade-for-trade certainly protects the interests of the existing investors and it also keeps speculative forces/players at bay from manipulating large intra day movements of the price.


The decision to put a security for trade-for-trade is usually taken by Stock exchanges and this decision is influenced by many factors. For if they find that the total floating stock (i.e. number of shares held and traded by public) is very less and if they see suspicious trading pattern and if they see that these are structured ring trades being placed to create artificial volume and price movement by speculative interests, they will decide to put the security in trade-for-trade.


I hope this helps...

Regards,

Expert Type Financial and Legal Consultant
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Answered: 3/6/2011

Experience: Graduated in law with Emphasis on Finance and have have been working in financial sector for over 8
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Great explanations! We should Really see some legitimate movement in the future IMO! Go CNUV!!!