On Wednesday 22 November 2006 09:41, Mike McMullin wrote:
On Wed, 2006-11-22 at 00:19 -0900, John Andersen wrote:
On Tuesday 21 November 2006 22:53, TheOldWiseKing wrote:
Another point I've just got from a friend, that in the USA Stock Market, It's not allowed to buy more that 10% of the stocks of a certain company. Because this may cause the buyer to bring the company down.
Anyone is sure of this information?
I suggest you get a more reliable friend.
There is a partial truth in the line above. One is not allowed to own more than 10% of a companies outstanding stock, unless one files papers with the SEC, regarding the buying or selling of that stock. Up to 10% is unfettered trading, over 10% is monitored trading.
There is no prohibition on owning any percentage of a company. One is not disallowed from doing so. The reporting obligation (a task that any broker will take care of for you) provides for a (fairly minor) civil monetary penalty for failure to do the paperwork, not stock forfeiture. Long before that penalty would kick in, a 5% owner would usually be demanding a seat on the board. Last time I checked Bill Gates only held around 3% of Microsoft stock. -- _____________________________________ John Andersen