Not according to what BB1 posted
#105086
"I am not saying anything, that is what happens, look up a WORTHLESS SECURITIES transaction and the procedures for such a transaction.
Quote: Some firms facilitate the sale of positions held by their customers in low value OTC equity securities, as defined in FINRA Rule 6420, that they or their customer may deem to be “worthless.” The firm purchases the shares to remove the position from the customer’s account and to enable the customer to claim a capital loss for tax purposes.1 The purchase price typically is nominal and set solely for purposes of liquidating the position. In some instances, it may not be a per share price, but may be sold, for example, for one penny or one dollar for the entire lot. Hence, these sales sometimes are referred to as “penny for the lot” transactions.
These sales are considered trades (i.e., there is a beneficial change in ownership) and are not expressly excluded from FINRA trade reporting rules.2 Accordingly, firms must report these sales to FINRA for public dissemination purposes as they would any other trade.
Because many of these sales are effected at a per lot price, the per share price may extend beyond six decimal places. FINRA notes that the OTC Reporting Facility (ORF) can accommodate six decimal places for purposes of reporting a per share price. If the per share price is equal to or less than $.000001,3 firms should report a price of $.000001. Any trade reported at a per share price less than $.0001 will be publicly disseminated with a price of $.0000.4
Finally, FINRA notes that some firms deem a security “worthless” solely on the basis that it currently has no bid and no longer trades.5 Firms are reminded that in any transaction with a customer, including those involving securities that a firm may deem to be “worthless,” best execution obligations under NASD Rule 2320 apply, and firms are required to use reasonable diligence to ascertain whether there is a market for the security.
There isn’t a market below .0001, FINRA clearly states this in their rules. The only transactions allowed below that market value is simply trade reporting, a broker must report the volume of shares for record purposes, the only transactions occurring are worthless security write offs.
ONE OF YOU IS INCORRECT
