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Strategies & Market Trends : WR's Momentum Trades -- Ignore unavailable to you. Want to Upgrade?

To: LANCE B who wrote (7572)	6/24/2000 12:34:00 PM
From: LANCE B	Read Replies (2) \| Respond to of 11130

JUST A REMINDER...starting monday you better start trying to back up and do a little more d.d before you hold onto any stock that you bought that day on news...what seems to go to be true,just might be...better start by making a call to that company...reminds me FTET never called me back to let me know in english exactly what value the p.r was..he put one dollar but per how many shares,does that equal 4 shares to one or something,see just do not trust companies to mean 1 share is valued at a buck The association announced the change after its approval in May by the U.S. Securities and Exchange Commission. The new rule will take effect June 26. In a press release, Nasdaq vice-president and bulletin board product manager Adena Friedman said the regulation is intended to protect buyers and sellers. The OTC BB is an electronic trading board. Although the dealers association oversees OTC operations, it has little to no regulatory control over trading or OTC-listed companies. Companies that list on the OTC BB usually do so because they fail to meet the stringent qualifications of the major American exchanges: the Nasdaq, the Amex and the NYSE. Often, they are penny stocks and do not meet the minimum price requirement. The company may have been insolvent, or is a "shell" company with no real product. Because of its lack of regulation, the trading board has often been referred to as the Wild West of securities exchanges, and is considered very risky. After June 26, the dealers association will be able to coordinate with other markets a halt in trading an OTC stock, and it will have the authority to halt trading if the company does not provide financial data in a "timely manner." Companies will have to give the association details on dividends, stock splits, and new subscription offerings at least 10 days before they are recorded. If the association is concerned by any of this information, it will be able to halt trading for up to five business days. According to association spokesman Wayne Lee, his organization's increased authority means OTC BB investors will be better protected. As the association records all news releases on a company, it may decide to halt trading until that news can be digested. Investors will then have a chance to inform themselves, he said. For example, an investor will not have to worry about finding he owns a stock that had an unannounced reverse split. "A better informed investor can certainly make better decisions," he added. Lee advises investors to do as much research on a company as they can before investing in it - and adds that the new regulations will make it easier for investors to research OTC BB stocks. But the new regulations also mean shareholders could find themselves holding a stock that is no longer trading. If the association so decides, a halted stock may never come back on the board. This spells bad news for those already holding the stock, but Lee says pulling the stock "is in itself a kind of protection" for new investors who might otherwise have bought in. Once the regulation comes into affect, information on trading halts will be available on the OTC BB home page, under "Trade Halts."