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Non-Tech : Market Makers - What They Do and How They Do It -- Ignore unavailable to you. Want to Upgrade?

To: jjs_ynot who wrote (40)	1/18/1999 9:47:00 AM
From: Hawkmoon	Read Replies (1) \| Respond to of 429

Dave, It is very difficult to research and perform proper DD on a BB company. It ususally requires a group of interested investors performing personal diligence and visitations in order to get a better feel for potential. As for registration, becoming a reporting company is a one-way street. Once a company becomes reporting, they are under a legal requirement to continue issuing those quarterly and annual filings. To become fully reporting, a company has to provide an audited financial report of its previous 2-3 years operating history and a 15c2-11 has to be filed with Nasdaq by a prospective market maker interested making a market in the stock. Also, once a stock is halted by the SEC, it must provide the information necessary for a Mmkr to file an updated 15c2-11 before a market can be recommenced in the stock. If you look through Edgar and don't find at least a 10Q or a previous 10K, then you can be relatively certain that the company is non-reporting. Basically, non-reporting companies are permitted a far greater degree of flexibiliity for raising financing without reporting the nature of those activities to shareholders. Insiders can sell stock without filing Form 4's... etc. Any way you look at it, non-reporting companies are basically an investing cr*p-shoot and for trading purposes and VERY speculative capital only. Regards, Ron