Suntech Options Are Now Closing Trades Only $STPFQ
From CBOE:
"Trading on CBOE in existing series of STPFQ options will be subject to the following restrictions. Only closing transactions may be affected in any series of STPFQ options except for (i) opening transactions by Market-Makers executed to accommodate closing transactions of other market participants and (ii)opening transactions by CBOE TPH organizations to facilitate the closing transactions of public customers executed as crosses pursuant to and in accordance with CBOE Rule 6.74(b) or (d)."
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5 comments:
Now the real fun begins on the pink sheets.
Fun as it goes to zero, you mean?
Down and Out in the Stock Market:
The Law and Economics of
the Delisting Process
http://www.law.yale.edu/documents/pdf/cbl/Jon_Macey.pdf
"While prices continue to decline after delisting, volume remains remarkably high, with average firs
t day trading in our sample of more than 2.25 million shares."
See Figure 4. The share prices asymptotically approach zero and the volatility decreases the longer shares are on the pink sheets.
Figure 5. People lose interest in trading and the volume dries up after about a month.
Figure 6. Volatility tapers off.
"In this study we examine a large sample of bankrupt companies who have submitted reorganization plans. Our evidence indicates that stockholders of these companies have unreasonably high expectations about their future prospects."
http://scholar.google.com/scholar?start=20&q=delisted+bankrupt&hl=en&as_sdt=0,5
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