Replies to post #25216 on US Energy Initiatives Corp (USEI)

[Ed the Trader]

"why the restriction? When the big boards give a dividend its seldom with restrictions. Pinks are just full of paper hanging ceos."

When the "big boards" (assuming this means stocks from DJI, NASDAQ, etc.) give out dividends, they usually give dividends in cash, not more shares of stock.

SEC Rule 144 is why stock is restricted when given as a dividend. Such shares cannot be traded for either 6 or 12 months after they are granred.

[jugs]

Legend removal is helpful as it dissuades shareholders from forcing a sudden imbalance, thus possibly imperiling the issuing company. Many shareholders will jump ship and effectively throw their awards overboard by selling their rights through the sale of the original shares.

The idea is to avoid handing control over to anyone but the CEO.