InvestorsHub Logo
Post# of 911
Next 10
Followers 9
Posts 2254
Boards Moderated 0
Alias Born 10/06/2009

Re: Yosako post# 898

Monday, 06/11/2012 7:30:32 PM

Monday, June 11, 2012 7:30:32 PM

Post# of 911
It's questionable whether it is legal: I'm not a securities lawyer, but basically you have a company that doesn't exist anywhere other than on paper trading. It's trading as an unregistered security, so is it really trading legally? I imagine the SEC's argument is something along the lines as to trade as a publicly traded company, you should be a registered, fully reporting company; you cannot be a registered, fully reporting company if you aren't a real company. Unregistered securities have been the bane of the SEC and clearing firms for a decade or so due to penny scams - so, by cutting off unregistered securities, you can cut off the headaches involved with most penny scams.

Join the InvestorsHub Community

Register for free to join our community of investors and share your ideas. You will also get access to streaming quotes, interactive charts, trades, portfolio, live options flow and more tools.