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Microcap & Penny Stocks : Naked Shorting-Hedge Fund & Market Maker manipulation? -- Ignore unavailable to you. Want to Upgrade?

To: rrufff who wrote (3465)	6/7/2008 4:01:26 PM
From: creede	Respond to of 5034

Thank you, rrufff. I could not have been more excited when I found it. Especially since the wording of "Pay to Play" or "Pay to File" would indicate, imo, that it something very well known in the market maker business - why else would they have a couple of slangs for the term? So now we add another dimension of difficulty for a pinksheet stock to overcome if they want to find a market maker to file a 15c2-11 - like the shareholders needed yet another hand held out that is getting shares for free! And so, looks like the 15c2-11 - which was supposed to be designed to protect us - can actually be used to hurt us if the CEO is not savey enough not to fall for this trap. re MM accounts - looks like we knocked out 2 birds with one stone. Here's some of what I really found to be juicy. Finally, the NASD warned members that "any arrangement whereby a member charges an issuer a fee for making a market or accepts an unsolicited payment from an issuer whose securities the member makes a market in raises serious questions under the anti-fraud provisions of the federal securities laws." NTM 75-16. Staff also cites to NTM 92-50, published in October 1992, which is a comprehensive guide regarding procedures for compliance with SEC Rule 15c2-11 and Schedule H, Section 4 to the NASD By-Laws (now known as Marketplace Rule 6740).5 NTM 92-50 states, "A market maker cannot accept any form of compensation, including cash [or] securities . . . for the purposes of making a market, to cover out-ofpocket expenses for making a market, or for submitting an application to make a market in an issuer's securities." (emphasis added). GB-ND creede

To: rrufff who wrote (3465)	6/7/2008 4:04:18 PM
From: creede	Respond to of 5034

Hey rrufff, any ideas why I can't find NTM 75-16 or NTM 92-50? Sure would like to have those from the horses mouth. Finally, the NASD warned members that "any arrangement whereby a member charges an issuer a fee for making a market or accepts an unsolicited payment from an issuer whose securities the member makes a market in raises serious questions under the anti-fraud provisions of the federal securities laws." NTM 75-16. Staff also cites to NTM 92-50, published in October 1992, which is a comprehensive guide regarding procedures for compliance with SEC Rule 15c2-11 and Schedule H, Section 4 to the NASD By-Laws (now known as Marketplace Rule 6740).5 NTM 92-50 states, "A market maker cannot accept any form of compensation, including cash [or] securities . . . for the purposes of making a market, to cover out-ofpocket expenses for making a market, or for submitting an application to make a market in an issuer's securities." (emphasis added). GB-ND c