What is a 12j security?

Section 12(j) also prohibits broker-dealers from effecting transactions in the securities of any issuer whose registration has been so revoked. The entry of a Section 12(j) order is, therefore, effectively stops the public trading of an issuer’s securities.

What does revocation of securities mean?

Once registration has been revoked, the stock’s ticker will be deleted. Shareholders will still be shareholders but in a private company. Their stock will be extremely illiquid, and its value will be difficult to determine, as there is no public market for it.

What does a defunct stock mean?

Defunct, in a business context, refers to the condition of a company, whether publicly traded or private, that has gone bankrupt and has ceased to exist. Defunct usually refers to something that no longer exists, functions, or is in use.

How long does a stock stay suspended?

A trading halt occurs in the U.S. when a stock exchange stops trading on a specific security for a certain time period. The halt, which can happen a few times a day per security if FINRA deems it, usually lasts for one hour, but is not limited to that. Trading halts can happen any time of day.

What is an 8 A12B?

What Is SEC Form 8-A12B? The term SEC Form 8-A12B refers to a Securities and Exchange Commission (SEC) filing required when a corporation wants to issue certain classes of securities. It is required as per Section 12(b) of the Securities Exchange Act of 1934.

What can you do with defunct stock?

You can cash it in by contacting a transfer agent to have the shares transferred to your brokerage account at their current value, or you can ask your broker to cash in the stock for you and deposit the proceeds into your account.

What is SEC trading suspension?

Suspended trading occurs when the U.S. Securities and Exchange Commission (SEC) intervenes in the market to halt trading activity due to serious concerns about a company’s assets, operations, or other financial information.

Why is my stock GREY in Ameritrade?

Gray (or “grey”) market trading generally occurs when a stock that has been suspended from trades off the market, or when new securities are bought and sold before official trading begins.

What are the benefits of delisting?

Simply put, there are no benefits of delisting from a stock exchange. There are certain regulations and compliances that a listed company has to follow. This includes compulsorily publishing its financial statements and quarterly reports and conducting AGM every year within a time period.

What can I do with suspended shares?

As the company shares are suspended from trading in the Stock Exchange, it will not be possible for you to trade in these shares through the Stock Exchange. You will be able to encash the value of your shares if you are able to find a willing buyer for your shares.

What is SEC Form 8-a used for?

SEC Form 8-A requires companies to register securities before they can be offered on an exchange. SEC Form 8-A requires a description of the type of securities offered, details of issuance, distribution date, and terms.