Grey Market or Grey Sheet Q & A

[Cassandra]

As they progress daily, those 3 charts of formerly very active stocks should be instructive as to what really happens when a stock is relegated to the grey market after an SEC suspension.

Liquidity (volume) is usually best on the day trading resumes after the suspension, even though the price is usually dramatically lower. The share price might show occasional improvement on lower volume down the road, but with severely reduced liquidity. In some cases, the stock opens at or near the former trading range because of GTC orders placed before the suspension.

Several of the 16 stocks have not traded at all since the mass suspension ended. They represent what often happens to less actively traded suspended stocks.

Hopefully shareholders of stocks suspended in the future will learn from these charts and know what to expect when trading resumes after the suspension and how best to manage their holdings.