Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Microcap & Penny Stocks : TGL WHAAAAAAAT! Alerts, thoughts, discussion. -- Ignore unavailable to you. Want to Upgrade?

To: jccodez who wrote (48087)	5/24/2000 6:12:00 PM
From: jccodez	Respond to of 150070

(REUTERS) NASD says to begin halting bulletin board stocks NASD says to begin halting bulletin board stocks By Elizabeth Smith NEW YORK, May 24 (Reuters) - In a bid to protect investors, the National Association of Securities Dealers said Wednesday it would begin to halt the trading and quoting of bulletin board stocks, often described as "microcaps." The NASD, which runs the Nasdaq, the nation's largest electronic stock market, said it had secured the go-ahead from the Securities and Exchange Commission and would start halting these securities on June 26. Unlike stocks listed on the Nasdaq or a national exchange, traders only buy and sell bulletin board stocks manually, over the phone, otherwise known as "over the counter," but they base trades on quotes distributed by Nasdaq's computer systems. Bulletin board stocks are generally shares in companies whose market values or assets are too small to meet the listing requirements of the Nasdaq. Some 3,800 stocks are quoted on the bulletin board, the NASD said. The NASD said it would begin to halt a bulletin board stock if trading in that security is halted on another exchange for regulatory reasons. It would also freeze trading in a bulletin board stock that is a warrant or another type of derivative of a security whose trading has been suspended on the Nasdaq or a national exchange. The NASD can also stop trading if a bulletin board company fails to announce a stock split, a dividend distribution or an offering 10 days before the record date of the transaction. "Nasdaq's expanded authority to halt trades in the over-the-counter (OTC) bulletin board securities will provide better protection to those who buy and sell securities quoted on that service," said Adena Friedman, a Nasdaq vice president and product manager of the OTC bulletin board. "The new authority will allow us to coordinate trading halts with other markets, which we have previously been unable to do, as well as halt trading of OTCBB companies that do not provide essential information in a timely manner." Prior to the SEC's approval, the NASD was only able to halt stocks listed on the Nasdaq and other national exchanges that traded in Nasdaq's third market. Although the NASD isn't involved in the execution of the buying and selling in bulletin board stocks, it can control trading activity because most traders in this market fall under the regulatory jurisdiction of the NASD. ((Wall Street Desk, 212-859-1891)) REUTERS * end of story *