Tuesday, September 30, 2014

SEC Suspends Trading in Nine Penny Stocks in Ongoing Initiative to Combat Microcap Fraud

The SEC has announced suspensions in trading for nine different penny stocks as part of an ongoing enforcement initiative to combat microcap fraud.
Trading suspensions provide the SEC with a means to immediately neutralize potential threats to investors when questions have arisen pertaining to the accuracy and adequacy of information about publicly traded companies.

Under the federal securities laws, the SEC can suspend trading in a stock for 10 days and generally prohibit a broker-dealer from soliciting investors to buy or sell the stock again until certain reporting requirements are met.  More information about the trading suspension process is available in an SEC investor bulletin on the topic.
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