Replies to post #110049 on KMA Global Solutions International (KMAG)

[rujebus]

So let me get this straight. The SEC "suspects" that information is either missing or inaccurate, and so suspends trading in order to protect investors. Because the SEC suspends a stock during an investigation, that stock is automatically sent to the abyss of trading, never to return? Even if no wrong was found by the SEC?

The SEC suspends a stock when they fear that insiders will dump their shares when they find out the SEC is looking into their operation. They suspend trading to protect investors, not because they caught the company red handed with machinations. If/when the SEC finds that everything looks kosher, and remove the suspension, are you telling me that the stock can never recover and the stigma of the suspension will cause the stock to falter, regardless of the reason of the suspension?

I can't believe that for one second. You said that you were in four other companies that didn't recover, but were they found to have done nothing wrong by the SEC? Where they found to have been honest with their filings and PRs?

[lowman]

When using examples, please indicate the reason for the suspension.

95% of the time, it has to do with the illegal issuance of new shares (what is a stock scam if it's not about selling new shares?). Understandly, MMs don't like to be party to trading in questionably issued shares. For this reason, they will usually have no more part in the trading, once a company's shares come into question by the SEC.

If on the other hand, the issue pertains to accuracy or validity of PRs, and has nothing to do with the shares themselves, then MMs have little concern. Afterall, they don't care about the company. MMs only care about the shares they're trading.

Years ago, BCI* MMs got stuck with millions of counterfeit shares. It happens.

It's all about the validity of the shares, as far as the MM is concerned.