Actually I understood that an entity could acquire up to 20 % of the shares of a company on the open market but beyond that the market on which it is listed and/or the SEC must be notified !
I would assume that these kinds of regulations exist to prevent a takeover of a company could not be executed behind closed doors and without all shareholders benefiting from any such takeover attempts !!!! Also these rules exist to protect brokers and the market to ensure they get their fees !
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