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Microcap & Penny Stocks : Rocky Mountain Int'l (OTC:RMIL former OTC:OVIS) -- Ignore unavailable to you. Want to Upgrade?

To: Just My Opinion who wrote (46924)	5/11/1998 7:55:00 PM
From: Ellen	Read Replies (1) \| Respond to of 55532

Well, that article can't be reproduced here due to BusinessWeek copyright issues. They don't allow it to be reproduced onto message/bulletin boards. After registering for the free areas there, I could read this article which brings out some important points. Like some others think probably, the proposed new regulation on the requirements - on the market makers - for completion of a form 15c2-11 sounds good. "Beef up", as BW put it, the rules governing market makers. Make them review a company's financials to see that they are current before signing off on this form, so they can then make a market in that particular stock. The idea, the article says, is to make them learn about the stocks they trade - and watch for possible fraud. The article says the SEC is receiving lots of comments on this rule proposal. Critical comments too - saying this rule would reduce liquidity in the microcap stocks and also that there would then be a great potential of lawsuits by "disgruntled" investors. According to the article, the author agrees with "the street", saying this proposal would "play into the hands of scamsters - by discouraging short-selling of scuzzy stocks". ??? Discouraging short selling is bad??? Supposedly, regulators are working to force clearing firms to pass on stock fraud evidence. (yeah, right!) The main gist of the article expresses the opinion that the responsibility to halt trading in shady OTC stocks would be passed on to the market makers. Sounds to me like that is letting the fox guard the hen house!! Yikes, what a BAD idea. As if mm's don't get away with enough already. This rule would "let" them decide which stocks are shady, which ones should be halted. If a broker or mm is shady, I certainly don't think they will be the best judge and jury. After reading this article and thinking about it, it could be disastrous if this rule is approved, IMHO. As the author states, let the regulators regulate - NOT the market makers.