Sounds like a typical penny stock scenario to me.
It is legal to have one on the pink sheets or OTC. The SEC allows those plays. It states in the fine print, if one does their DD, that those stocks are risky. You are in danger of losing your entire investment. All are volatile plays.
It's perfectly legal and no winners in the game, when the company folds.
Just like penny slot machines at your local quick stop store on the corner.....ahhh.....The Penny Stock Plays.
Ethical....you decide.
Legal......YES
Graduate to the Big Board Stocks or continue with the penny plays.
There are layers upon layers of legality issues. The people who run stocks are smart and they know how to protect their rights.
I lost money on a penny play, but guess what;-)? It was my choice, and nobody forced me to bet on that Penny Stock.
Have a nice day.;)
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