SEC Commissioner Hester Peirce Dissents on Permanent Penny Stock Bars
SEC Commissioner Hester Peirce has expressed her dissenting stance on the Commission’s latest decision to impose permanent penny stock bars on four respondents involved in adjudication matters. Peirce expressed concern in her tweet, stating, “Protecting investors is important, but the government needs to have a good reason to prevent people from investing their own money as they choose.”
- Penny stocks are publicly-traded shares of small companies that typically trade for less than $5 per share.
- Peirce highlights the complexity of the issue at hand.
- Administrative proceedings should be remedial and not punitive in nature.
- The Commission’s orders prohibit the respondents from participating in any offering of a penny stock.
- Peirce disagrees with the broad penny stock bars, citing a lack of adequately explained link between the need for the bars and the facts of the cases.
- Peirce suggests the implementation of narrower penny stock bars to protect the public interest while preserving respondents’ right to engage in lawful economic activity with their own money.
This recent discussion spearheaded by Commissioner Peirce sheds light on the grey areas of penny stock regulation and the need for careful scrutiny of each case. It further underscores the ongoing debate surrounding the government’s role in guiding investment choices.
Hot Take:
SEC Commissioner Hester Peirce’s dissenting stance on permanent penny stock bars highlights the importance of protecting investors while also allowing individuals to invest their own money as they choose. Her objection to the broad penny stock bars emphasizes the need for a clear link between the need for such bars and the specific facts of each case. Peirce’s suggestion for narrower penny stock bars provides a potential solution that balances the public interest and individuals’ rights to engage in lawful economic activity.
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