SEC Spots a Way to Starve the Most Suspicious Penny Stocks
Photographer: Joshua Roberts/Bloomberg
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U.S. regulators seeking to clean up over-the-counter stock trading think they’ve found some promising fixes.
The Securities and Exchange Commission is considering whether to forbid market makers from providing price quotes to retail investors for OTC companies that haven’t released financial reports for an extended period of time, according to Brett Redfearn, who runs the regulator’s division of trading and markets. No quotes effectively means no trading.