SEC launches probe into IPO flipping; state regulators fire 1st volly in matter

Article Abstract:

The Securities and Exchange Commission has launched an inquiry into how brokerage firms seek to bar small investors from "flipping", or quickly selling, initial public offerings, but allow institutional investors to flip hot new stocks with impunity. The SEC is focusing on "penalty bids" which are punishments given to brokers who allow individual clients to flip IPOs. William Francis Galvin, secretary of the Massachusetts commonwealth, said that the practice of penatly bids "clearly is inconsistent with an open and free market." He also said, "If this is an industrywide policy, it represents a restriction on the market, and that's wrong." Joseph Charles & Associates lost their brokerage license, because their IPO flipping policy was found to be unethical.

Comment:

The SEC has launched an inquiry into how brokerage firms seek to bar small investors from flipping

Government regulation (cont), Securities Brokerage, Legal/Government Regulation, Stockbrokers

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Board of Competitive Technologies setting independent review

Article Abstract:

Competitive Technologies Inc. announced that it was establishing an independent panel to review its operations and business strategy. The establishment of the panel came after George M. Stadler, the CEO of Competitive Technologies, went on a leave of absence for personal reasons. However, a company spokesman asserted that Mr. Stadler's leave of absence was unrelated to the independent panel.

Comment:

Announced establishment of an independent panel to review its operations and business strategy

Strategy & planning, Company Planning/Goals, Other Management Consulting Services, Business & Mgmt Consulting NEC, Consulting services, Competitive Technologies Inc. (Fairfield, Connecticut)

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