SEC Suspends Trading in 128 Dormant Companies Under "Operation Shell-Expel" (with Lofchie Citation)
The SEC suspended trading in 128 inactive penny stock companies to ensure that they don't become sources for pump-and-dump schemes.
According to the SEC, the trading suspensions are the latest in a microcap fraud-fighting initiative known as "Operation Shell-Expel," which utilizes technology to scour the over-the-counter marketplace and identify dormant companies ripe for abuse.
The SEC explained that once a stock has been suspended from trading, it cannot be relisted unless the company provides updated financial information to prove that it's actually operational. Additionally, it is "extremely rare" for a company to fulfill this requirement, which means that the trading suspensions essentially render the shells useless to scam artists.
Lofchie Comment: Except for its title, this is a wholly unrelated citation.