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Vision Penny for the Lot Customer Instruction and Acknowledgement Your Broker is unable to locate a ready market or an independent transfer agent for the securities listed below to conduct a security.

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Who is exempt from the penny stock rule? Some issuers that are selling stocks below $5 a share gain exemption from registration with the Securities and Exchange Commission (SEC). These companies are generally smaller companies with low assets and capital, and they would have difficulty doing a full registration.

Established customers are those that have held an account and effected transactions with that broker or dealer for more than one year prior to the subject penny stock transaction, or have made at least three purchases of penny stocks on different days and involving different issuers.

For penny stock sales, established customers are those who have traded penny stocks on an unsolicited basis three times previously or have had an account with the firm for at least a year. Established customers do not need to sign suitability statements for penny stock solicitations.

SEC Rule 15g-4 requires broker/dealers to disclose to customers for or with whom they effect penny-stock transactions, both prior to and when confirming the transaction, the amount of any compensation the broker/dealer received from the transactions.

Suitability statements are not required under the "penny stock rule" for so-called "established customers." These are customers who have either had cash or securities in custody of that broker-dealer for at least 1 year; or customers who have bought 3 or more "penny stock" issues previously from that broker-dealer.

1 The purchase price typically is nominal and set solely for purposes of liquidating the position. In some instances, it may not be a per share price, but may be sold, for example, for one penny or one dollar for the entire lot. Hence, these sales sometimes are referred to as “penny for the lot” transactions.

Unless the transaction is exempt under the Rules, broker/dealers effecting customer transactions in such defined penny stocks are required to provide their customers with: (1) a risk disclosure document; (2) disclosure of current bid and ask quotations, if any; (3) disclosure of the compensation of the broker/dealer ...

Who is exempt from the penny stock rule? Some issuers that are selling stocks below $5 a share gain exemption from registration with the Securities and Exchange Commission (SEC). These companies are generally smaller companies with low assets and capital, and they would have difficulty doing a full registration.

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© Copyright 1997-2025
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Form Packages
Adoption
Bankruptcy
Contractors
Divorce
Home Sales
Employment
Identity Theft
Incorporation
Landlord Tenant
Living Trust
Name Change
Personal Planning
Small Business
Wills & Estates
Packages A-Z
Form Categories
Affidavits
Bankruptcy
Bill of Sale
Corporate - LLC
Divorce
Employment
Identity Theft
Internet Technology
Landlord Tenant
Living Wills
Name Change
Power of Attorney
Real Estate
Small Estates
Wills
All Forms
Forms A-Z
Form Library
Customer Service
Terms of Service
DMCA Policy
About Us
Blog
Affiliates
Contact Us
Privacy Notice
Delete My Account
Site Map
All Forms
Search all Forms
Industries
Forms in Spanish
Localized Forms
Legal Guides
Real Estate Handbook
All Guides
Prepared for You
Notarize
Incorporation services
Our Customers
For Consumers
For Small Business
For Attorneys
Our Sites
US Legal Forms
USLegal
FormsPass
pdfFiller
signNow
airSlate workflows
DocHub
Instapage
Social Media
Call us now toll free:
1-877-389-0141
As seen in:
  • USA Today logo picture
  • CBC News logo picture
  • LA Times logo picture
  • The Washington Post logo picture
  • AP logo picture
  • Forbes logo picture
© Copyright 1997-2025
airSlate Legal Forms, Inc.
3720 Flowood Dr, Flowood, Mississippi 39232