Grey Sheets stocks can still be traded, but those
Post# of 36729
Posted On: 03/19/2014 12:43:54 PM
Grey Sheets stocks can still be traded, but those stocks have no market makers, nor are the tickers any longer included in the Continuous Net Settlement (CNS) -- "...an automated book-entry accounting system. CNS centralizes the settlement of compared transactions and maintains an efficient flow of security and money balances." Each trade on the Greys is a separate instance arranged by the broker and a dealer.
In order to regain the Pink Sheets, forms must be filed and a sponsoring market maker must be found. However, as that market maker assumes full liability and the SEC keeps investigations and litigation secret, no market maker will assume the risk while the case is pending.
Reportedly, since 2009, thousands of tickers have been suspended (1800+ since 2010); only two have managed to get off the Grey Sheets. There is always a chance of reinstatement on the pinks if litigation is successful. However, history weighs against that outcome or any timely resolution.
"From January 1, 2010 to March 8, 2014 the SEC suspended 1,837 stocks. All were removed to the Grey Sheets. Of the 1,837 suspended stocks, 812 remain on the Grey Sheets and, in the case of other 1025 companies, their registrations were revoked.
Since Jan 2011 only one suspended stock, EDVP (now PRLX) a fully reporting SEC company, managed to get off the Grey Sheets. Before EVDP, the last ticker to leave the grey sheets after suspension was Emergent Health Corp (EMGE) suspended on September 30, 2009."
As of March 8, 2014
In order to regain the Pink Sheets, forms must be filed and a sponsoring market maker must be found. However, as that market maker assumes full liability and the SEC keeps investigations and litigation secret, no market maker will assume the risk while the case is pending.
Reportedly, since 2009, thousands of tickers have been suspended (1800+ since 2010); only two have managed to get off the Grey Sheets. There is always a chance of reinstatement on the pinks if litigation is successful. However, history weighs against that outcome or any timely resolution.
"From January 1, 2010 to March 8, 2014 the SEC suspended 1,837 stocks. All were removed to the Grey Sheets. Of the 1,837 suspended stocks, 812 remain on the Grey Sheets and, in the case of other 1025 companies, their registrations were revoked.
Since Jan 2011 only one suspended stock, EDVP (now PRLX) a fully reporting SEC company, managed to get off the Grey Sheets. Before EVDP, the last ticker to leave the grey sheets after suspension was Emergent Health Corp (EMGE) suspended on September 30, 2009."
As of March 8, 2014
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