The small public company after the Penny Stock Reform Act of 1990

Article Abstract:

Penny stocks are equity securities that sell for less than five dollars per share, and are one of the best ways for small companies to raise capital. Unfortunately, because most penny stocks are not traded on an established market, the possibilities for abuse are great and the prevalence of such abuse during the 1980s has led to increased regulation including the Penny Stock Reform Act of 1990. A comparison of the market in penny stocks and the major exchanges is presented along with an overview of manipulation techniques and the influence of recent regulation.

Penny stocks

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On the same side of the table: is Investment Company Act rule 17d-1 partly invalid?

Article Abstract:

The SEC was empowered by section 17(d) of the Investment Companies Act to regulate joint transactions by investment companies and their affiliates. Rule 17d-1 is over broad and incompatible with the description of joint participation in 17(d). It has also been wrongly used by the SEC to restrict compensation, and prosecute corrupt practices. The SEC has sought reactions to proposals of simplifying or amending Rule 17d-1 and several recommendations are included.

Investments

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Some recent developments relating to the circumstances under which a "restricted" warrant holder can "tack" the holding periods of the warrant and the underlying stock for purposes of rules 144(d) and 144(k)

Article Abstract:

Restricted stock options are normally subject to a two-year waiting period before a sale of the stock can take place as per SEC rule 144. Recent policy statements by the SEC permit the use of the period of ownership of the option to count towards this limit if the option price is paid in other securities, including the warrants themselves, rather than cash. However, this ruling specifically excludes employee stock options.

Employee stock options

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