Regulatory Outlook | 09.21.20
SEC Bolsters Safeguards Against Penny-Stock Fraud
The SEC is bolstering protections against fraud and manipulation in the market for over-the-counter stocks. The SEC approved a change to its rules that would largely prevent brokers from quoting prices for OTC stocks unless the companies issuing such shares released up-to-date financial information to the public. That would make it harder for individual investors to trade shares of OTC companies that have stopped releasing their financials. In turn, that would make it harder for would-be swindlers to use such stocks in schemes targeting small investors.
Read the full article on Wall Street Journal.