Wednesday, November 30th, 2016

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 stock Redhat. For whatever the reason, the SEC you suspend trading of stock Redhat for x Amount of days. D?ring That Time Period, Bob contacts Alice and her Offers to buy 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?

Comments

One Response to “What are the penalties, if any, for trading a stock that has been suspended by the SEC?”
  1. A nobody says:

    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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