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PennyHoper

12/01/23 9:02 AM

#19402 RE: trader53 #19382

T53 - as always, that's a mighty fine pile of resources. Pulling out a quote from one of them:
https://tavaga.com/tavagapedia/market-maker/#:~:text=A%20market%20maker%20is%20a%20market%20participant%2C%20which,the%20market.%20They%20are%20called%20dealers%20as%20well

Whenever a market maker is prepared to sell or buy stocks of a specific company, he or she offers a quoted price, i.e. bid and asks for a quote for that particular stock.



If the currently showing quoted price through Schwab is NOT a glitch (despite what they say), then it must have come from a market-maker who is "prepared to sell or buy" this stock.

To rehash a previously discussed resource (which you also include), that market-maker gets prepared by inspecting the company's financials in order to vouch for them as being sound:
https://www.bakerlaw.com/insights/sec-adopts-amendments-to-rule-15c2-11/

Two Ways to Confirm Information. Before quoting an issuer’s security, a broker-dealer must confirm that certain information about an issuer and its securities is current and publicly available. The Amendment provides a broker-dealer with two ways to satisfy this obligation: 1) independently obtaining such information from issuers (or their agents) and reviewing it for material accuracy and reliability or 2) relying on a publicly available determination by a qualified IDQS.



At this point, we all know who the "agent" could be.

The next issue to discuss is the problem of WCVC's current condition of being revoked because it was waaaay delinquent in reporting.

This resource doesn't mention the term "revoked," but I think WCVC falls into the "Catch-all" category:

Catch-all and Delinquent Reporting Issuers. An issuer that is not subject to any of the above or similar disclosure and reporting requirements is considered a “catch-all issuer.” The amended Rule also treats reporting issuers that are delinquent in their filing obligations and therefore without current public information as catch-all issuers only for purposes of initiating or resuming a quoted market in such issuers’ securities.



We see from here the anticipation of, and permission for, a delinquent stock to 'resume' being quoted. (I still wish they had explicitly addressed "revoked" stocks. If only there was an expert out there who could clarify whether WCVC officially fits into this category.)

The key metrics for qualifying are these:

The Amendment expands the information and clarifies the financial information required to be provided by catch-all issuers pursuant to Rule 15c2-11(b). Current information includes the identity of company officers and large shareholders, job titles for company insiders, the names of all of an issuer’s predecessors during the past five years, the issuer’s principal place of business, the state of incorporation or registration of each of the issuer’s predecessors (if any) during the past five years, and the ticker symbol (if assigned) during the past five years. In addition, the Amendment clarifies that a catch-all issuer’s financials will be considered current and therefore able to be quoted by a broker-dealer if 1) the date of its most recent balance sheet is not more than 16 months before the publication or submission of the broker-dealer’s quotation and 2) its profit-and-loss and retained earnings statements are for the 12 months preceding the date of the balance sheet.



First, the items before the text I have put in bold are a piece-of-cake. That's all cut-and-paste.

Second, the text in bold holds the primary key we are concerned about.

I'd like to see clarification from an expert on this, that the time-frames do NOT refer to the last PUBLISHED balance sheet and profit-and-loss and retained earnings statements, for obviously WCVC has been dark far longer than the larger of the two time frames (16 months). [Such a timeout would doom any company from returning to trading if it has gone dark for longer than that.]

If, however, these time-frames ONLY refer to what the (potential) market-maker obtains privately from the issuer or its agent within the last 16 months (see above), then it's not a problem IF the issuer has privately kept up or caught up with his paperwork. ONLY needing 16 months of info is less than what is required by the OTC Market's alternative reporting standard of the last 2 years of financials plus any quarterlies.

[This also makes me wonder if WCVC will come back to life via Edgar rather than the OTC Markets alternate reporting standard; but I suspect WCVC has the info needed for both.]