Replies to post #55989 on American Fusion Inc (AMFN)

[BigBadWolf]

🤣Where did I say

$AMFN... they are not in violation of ANYTHING!!!

🤔🤔🤔🤔🤔🙄🙄🙄🙄🙄🤔🤔🤔🤔🤔🙄🙄🙄🙄🙄🤔🤔🤔🤔🤔🙄🙄🙄🙄🙄🤔🤔🐺🐖🐺🐖🐺
Actually what I did say was, https://investorshub.advfn.com/boards/read_msg.aspx?message_id=177649228

[tdbowieknife]

In almost all cases, a legitimate FINRA-member market maker will not file a Form 211 for a heavily promoted OTC stock. And this doesn't even consider all the discrepancies between the promotional stuff and SEC filings of... The fraud.

While technically possible under the letter of the law, the regulatory reality, strict compliance liabilities, and structural restrictions make it an incredibly high-risk, low-reward proposition that reputable market makers actively avoid.

1. The Red Flag Liability & Regulatory Risk
Under SEC Rule 15c2-11 and FINRA Rule 6432, a market maker cannot simply act as a rubber stamp to get a stock quoted. They are legally positioned as gatekeepers.

Before submitting a Form 211, the sponsoring market maker must conduct rigorous due diligence on the issuer's corporate governance, financials, share structure, and management. Heavy promotional activity—especially when decoupled from an established operating business, or featuring typical penny-stock "hype"—is a massive red flag.

If FINRA detects that a market maker sponsored a shell or a highly promotional microcap without performing sufficient diligence to verify that the issuer's disclosures are accurate and not misleading, the market maker faces severe enforcement action, fines, and potential loss of licensing.

2. FINRA's Discretionary Disapproval
Even if an optimistic or reckless market maker actually attempts to file a Form 211 for a promoted stock, FINRA will likely reject or indefinitely delay it.

FINRA reviews the applications thoroughly through its OTC Compliance Unit.
Securities Lawyer 101

Under FINRA Rules 6432 and 6490, the regulator has explicit discretion to deny or stop processing a Form 211 if it believes the filing contains misleading information, if the corporate history is opaque (such as undocumented reverse mergers), or if the issuer appears to be part of a manipulative or fraudulent scheme.

An active, aggressive promotional campaign before the stock is even publicly quoted signals an unstable market or potential "pump-and-dump" design, causing FINRA to issue exhausting deficiency letters that effectively kill the application.

3. The "No Compensation" Rule
FINRA Rule 5250 strictly prohibits market makers from accepting any form of payment, remuneration, or consideration from an issuer, its affiliates, or its promoters for filing a Form 211 or publishing a quote.

Market makers can only charge standardized, legitimate due diligence/accounting fees (typically ranging from $10,000 to $25,000) to cover their legal and administrative review hours.

Because they cannot take a financial piece of the "hype" or receive under-the-table kickbacks from the promoters, the market maker has zero financial incentive to take on the massive regulatory liability of sponsoring a highly toxic, promoted stock.

4. Post-2021 Structural Shift (The Amended Rule 15c2-11)
The landscape shifted permanently following the SEC's 2021 amendments to Rule 15c2-11.

The Death of the Permanent Piggyback: Historically, a market maker filed a 211 once, and other firms could "piggyback" on it forever, even if the company stopped reporting. Today, if a company does not continuously maintain current, publicly available financial information, it loses proprietary broker-dealer quotes. It is stripped of its quotation status and dropped down to the Expert Market (where quotes are hidden from the public) or the illiquid Gray Market.

Alternative Paths: Legitimate, transparent companies seeking a public quote now frequently bypass the cumbersome market maker Form 211 altogether by submitting directly to the OTC Markets Group (acting as a Qualified Interdealer Quotation System, or IDQS) for an Initial Information Review.
OTC Markets

Summary: If an OTC stock is currently being heavily promoted but lacks a cleared Form 211 or current designation, it is a structural impossibility for a compliant broker-dealer to step in and sponsor it. The presence of aggressive promotion acts as an immediate deterrent to market makers, who view it as an automatic compliance liability.

Look it up...

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Watch your wallet


Buyer Beware
Social Media Promoted Frontload Pump and Dump Share Selling Scam



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[linkvest]

Somebody or some group has been loading up on AMFN stock shares for the last few days. Once they are finished there will be no holding back on this stock.