Great summary Renee. I have just 'a little' difficulty with this:
Brokers simply do not allow opening positions (ie., buy orders) because they do not want to be saddled with unsettled trades when the SEC Admin. Law Judge revokes those stock registrations. So, even if LAHO had opened on the Grey Market shareholders could try to sell their shares but Brokers would likely prevent any buy orders...
My disagreement revolves around 'shorts'. I remain of the opinion that brokers try to support short plays every chance they get. Literally acquiring additional fees on stock owned by someone else.
Great deal for brokers. When an event like what happened to LAHO where an immediate suspension of trade, shorts were left with an obligation to return the shares they own...the mechanics are too convoluted for me to ever try going the short route..
However, I am left with the opinion that an 'out' for shorts to fulfill their end of the bargain and return the shares they 'borrowed and sold' remains with the grey sheets. I believe this 'automatic' (unless otherwise avoided as LAHO did) is a means available to shorts for buying shares again before the ticker may be lost forever).
My disagreement resides with interpreting WHY this provision of grey sheets even exist in SEC regs. Shorting is BIG BUSINESS! Lobbyist exists to support this clause I am sure.
Therefore, I am highly doubtful that brokers inhibit any outstanding short from 'buying shares' in the grey sheets (at a lower pps no doubt) to complete (return) their obligation.