@ripienaar Heh, I’ve been using Linux as long as *I* have been shaving. – von jtimberman (Joshua Timberman)
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@ripienaar Heh, I’ve been using Linux as long as *I* have been shaving.
Posted by – August 24, 2011
What are the penalties, if any, for trading a stock that has been suspended by the SEC?
Posted by – Juni 8, 2011
Question by 232747: What are the penalties, if any, for trading a stock that has been suspended by the SEC?
Lets say Alice owns 100 shares @ $ 40 a share of Redhat stock. For whatever the reason, the SEC suspendes trading of Redhat stock for x amount of days. During that time period, Bob contacts Alice and offers to buy her 100 shares of stock for $ 50, over the counter.
Are there any penalties for either Alice or Bob if they go through with the deal while trading is suspended?
Best answer:
Answer by A nobody
Alice can “sell” the stock to Bob by assigning the certificate over to Bob for which Bob will pay her X amount of dollars. There is no penalty or any other repercussions.
In assigning the certificate, Alice will complete the “assignment” section on the back of the certificate an sign on the bottom right Te signature must be guaranteed by either a B/D or a national bank.
This is considered a “private” transaction and is not really covered by the SEC unless either Bob or Alice are insiders.
If either is an insider, then the transaction is prohibited.
Neither one can “trade” over the counter since this implies the use of a B/D in a recognized market place which is prohibited by the SEC
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