posted
Here is a little info Di. I'll see what else I can find.
DAVID BRUSER BUSINESS REPORTER
Montreal-based Mitec Telecom Inc. has joined a group of North American companies that are trying to figure out how they got listed on a German stock exchange.
The telecom equipment maker announced yesterday it has formally requested the Berlin-Bremen Stock Exchange to de-list its stock after it appeared April 30 without the company's permission or prior knowledge.
"We got a letter from one of the brokers in Germany informing us of the fact that we have been listed, ... and that really was surprising," Mitec president Rajiv Pancholy said. "We came to know that we are not the only company in this situation. ... It is ridiculous. The list literally runs into the hundreds."
On Germany's stock exchanges, a company's shares can be traded without the company first applying or granting permission as long as a broker asks to trade those shares and other standards are met, according to the Berlin Exchange.
"If the listing standards of the home market are comparable with German and European standards, the introduction to trading will be granted ... on application of a broker," according to a statement from the Berlin Exchange.
Pancholy doesn't understand the rule. "Most regulatory authorities all over the world have pretty strong policies," he said. "Certainly, I have never heard of stock exchanges listing a company without the company's (permission)."
Mitec's complaint joins a chorus of demands from other companies that the exchange de-list their shares. Announcements released by several companies in recent weeks speculate that the listings may be part of an effort to evade North American regulations against "naked" short selling that some securities authorities have firmed up this year.
In a short sale the participant does not own the shares but has borrowed them in anticipation of making a profit. In a "naked" short sale, there is no borrowing.
"It's almost like taking a bet on a stock without physically having to own the shares," said Moshe Milevsky, finance professor at York University. "Is that bad? It depends on who you talk to. If I'm a CFO, I don't want downward pressure on my stock. ... It's not bad if you think a stock is overvalued and you should be able to take a bearish bet on it. I don't think it's intrinsically evil to allow this to take place."
But Berlin Exchange spokesperson Eva Klose insists Germany has not become a haven for naked short selling.
"In Germany it's possible to trade foreign shares. It's totally a normal matter. It's not illegal or wrong," she said.
"There isn't any (naked) short selling in Berlin and there will not be any."
It is still unclear whether trading in Germany affected Mitec stock at home, but the company is still investigating.
Other companies found the de-listing process to be complicated and expensive. Hearing the Berlin Exchange's reputation for naked short-selling, Stephen Grossman, CEO of Vancouver-based Kelso Technologies Inc., fought to be de-listed since he found out from a German broker in May that his company was "hijacked," he said.
"It's known for naked short-selling. That can endanger us," Grossman said. "We should have the right to ask to be on the exchange."
Grossman said several letters exchanged hands and he used two lawyers to apply pressure, but it was not until he threatened negative publicity that the exchange de-listed Kelso last week, he said.
The Ontario Securities Commission said it is keeping an eye on the situation. The U.S. Securities and Exchange Commission would not say if it was investigating.
-------------------- Lil,
Dont LOSE more than you can afford to invest....LOL
I'm buying low and selling into the run... Posts: 8024 | From: Joisey....see attitude above | Registered: Jan 2004
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Member Rated: posted April 02, 2005 20:31 -------------------------------------------------------------------------------- and don't forget the EXCEPTION to ALL rules, the Berlin-Bremen Stock Exchange. Running inside the so called "European Union". Purpose and reason for existance; ruin the US stock market/economy.....working well by ILLEGALLY listing and making US companies available to trade via this "ghost" exchange......
-------------------- Lil,
Dont LOSE more than you can afford to invest....LOL
I'm buying low and selling into the run... Posts: 8024 | From: Joisey....see attitude above | Registered: Jan 2004
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posted
{{{{{{ DIANA }}}}}} Hey, G/F!!!!! Where are you? Been trying to contact you for a few months!! Call me on my cell!! Robin
Posts: 455 | Registered: Feb 2004
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