Post by fastwalker on Mar 15, 2005 15:56:15 GMT -5
That is difficult to say. However, standard thinking would suggest that if we don’t have additional delaying news between today and the opening bell on the 17th of March we will open on the Grey Market.
There is still a lot of "off the wall" speculation as to what will happen. But, if I read the SEC regulations correctly, we should be relegated to the “Grey” market for all intents and purposes.
Which is the normal course of action, as a result of not being actively trading for a given number of days?
While I’m confident that most understand these terms (de-listed & grey markets), I ‘ll give a quick definition just in case.
What does being “de-listed” mean? Basically, it means, when the SEC orders that a stock of a company be removed from a stock exchange. Reasons for delisting includes violating regulations and/or failure to meet financial specifications set out by the stock change.
Keep in mind,Companies that are delisted are not all in or headed to bankrupt, and therefor, may continue trading on the OTCBB.)….
The legal dictionary defines the gray market as ....."A market employing irregular but not illegal methods." And as a market that legally circumvents authorized channels of distribution to sell goods at prices lower than those intended by the manufacturer
Okay, so it’s an informal market dealing in shares before official dealings begin. Guess what? It used to be confined to big institutions.
However, the advent of spread-betting and contract for differences allows even small investors to trade the shares before they formally exist.
This can be very useful if you missed the boat for applications, or if you want to increase you stake or make some other change to your position.
Trading in gray or "when-issued" markets can also provide a good indication of demand for a new issue.
Understand, that normally the grey market is actually a market where there is trading of a stock that is about to be issued for the first time, before it's issued.
In those circumsatnces, Grey market trading is risky because sellers' don't know how many shares they have - i.e. they're selling shares they don't own yet - and buyers don't know what the final issue price is going to be when the allocation is complete.
One last thing, you can't short stock on the Grey market, amazing...real protection from NSS...go figure...lol
Having stated the above……we now move to those other basics, that will be bantered about in the coming days….regarding the “so far released” share structure, a major topic on the many people’s minds relevant to CMKX ..Bottom line though, while many have threatened to vacate their position when CMKX started trading again on the 17th, by far, it appears that a high CMKX “float” is the real deal breaker for the majority of the shareholders…we’ll just have to wait and see.
In the meantime though, the following is a refresher course and or an introductory course on some basics…<br>
Okay for the sake of easy association, I will use CMKX as the company of example in the next sections. Keep in mind that the amounts are merely “example” and do not reflect the true share structure of CMKX.
What is the float?
The float is the total number of shares publicly owned and available for trading. The float is calculated by subtracting restricted shares from outstanding shares. For example, a company may have 10 million outstanding shares, but only 7 million are trading on the stock market. So, the float would be 7 million. Stocks with small floats, under 3 million shares, tend to be a lot more volatile than others. Also known as "free float
Next we answer questions on the Restricted and the Float….
When you look a little closer at the quotes for a company, you may see some obscure terms that you've never encountered before. For instance, restricted shares refer to a company's issued stock that cannot be bought or sold without special permission by the SEC. Often, this type of stock is given to insiders as part of their salaries or as additional benefits. Another term that you may encounter is “float.” This refers to a company's shares that are freely bought and sold without restrictions in the public. Denoting the greatest
more....
There is still a lot of "off the wall" speculation as to what will happen. But, if I read the SEC regulations correctly, we should be relegated to the “Grey” market for all intents and purposes.
Which is the normal course of action, as a result of not being actively trading for a given number of days?
While I’m confident that most understand these terms (de-listed & grey markets), I ‘ll give a quick definition just in case.
What does being “de-listed” mean? Basically, it means, when the SEC orders that a stock of a company be removed from a stock exchange. Reasons for delisting includes violating regulations and/or failure to meet financial specifications set out by the stock change.
Keep in mind,Companies that are delisted are not all in or headed to bankrupt, and therefor, may continue trading on the OTCBB.)….
The legal dictionary defines the gray market as ....."A market employing irregular but not illegal methods." And as a market that legally circumvents authorized channels of distribution to sell goods at prices lower than those intended by the manufacturer
Okay, so it’s an informal market dealing in shares before official dealings begin. Guess what? It used to be confined to big institutions.
However, the advent of spread-betting and contract for differences allows even small investors to trade the shares before they formally exist.
This can be very useful if you missed the boat for applications, or if you want to increase you stake or make some other change to your position.
Trading in gray or "when-issued" markets can also provide a good indication of demand for a new issue.
Understand, that normally the grey market is actually a market where there is trading of a stock that is about to be issued for the first time, before it's issued.
In those circumsatnces, Grey market trading is risky because sellers' don't know how many shares they have - i.e. they're selling shares they don't own yet - and buyers don't know what the final issue price is going to be when the allocation is complete.
One last thing, you can't short stock on the Grey market, amazing...real protection from NSS...go figure...lol
Having stated the above……we now move to those other basics, that will be bantered about in the coming days….regarding the “so far released” share structure, a major topic on the many people’s minds relevant to CMKX ..Bottom line though, while many have threatened to vacate their position when CMKX started trading again on the 17th, by far, it appears that a high CMKX “float” is the real deal breaker for the majority of the shareholders…we’ll just have to wait and see.
In the meantime though, the following is a refresher course and or an introductory course on some basics…<br>
Okay for the sake of easy association, I will use CMKX as the company of example in the next sections. Keep in mind that the amounts are merely “example” and do not reflect the true share structure of CMKX.
What is the float?
The float is the total number of shares publicly owned and available for trading. The float is calculated by subtracting restricted shares from outstanding shares. For example, a company may have 10 million outstanding shares, but only 7 million are trading on the stock market. So, the float would be 7 million. Stocks with small floats, under 3 million shares, tend to be a lot more volatile than others. Also known as "free float
Next we answer questions on the Restricted and the Float….
When you look a little closer at the quotes for a company, you may see some obscure terms that you've never encountered before. For instance, restricted shares refer to a company's issued stock that cannot be bought or sold without special permission by the SEC. Often, this type of stock is given to insiders as part of their salaries or as additional benefits. Another term that you may encounter is “float.” This refers to a company's shares that are freely bought and sold without restrictions in the public. Denoting the greatest
more....