Perhaps you are correct,there may be no US Govt.Law, however it seemes there are some Institutional Laws preventing ownership under $5.00.
Example:
Citigroup - This bank has had a considerable amount of problems, but it looks as if Citi may finally be ready to turn the corner. One major catalyst for Citi could be "increased institutional ownership if the company can get its share price over $5. Many institutions have bylaws which prohibit them from buying stocks under $5". For this reason, Citi is under owned, and there could potentially be some big marginal buyers once the stock rises over $5. Over the last 52-weeks, C shares have gained around 10%
Read more: http://www.benzinga.com/trading-ideas/long-ideas/11/03/943741/stocks-to-consider-under-10-tivo-siri-c#ixzz1K49epjsy
"it only matters in the sense there are many institutions and mutual funds that cannot own stocks. it's in their bylaws that they can't own stocks below $5"
Perhaps you are correct,there may be no US Govt.Law, however it...
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Last
$7.15 |
Change
0.010(0.14%) |
Mkt cap ! $6.683B | |||
| Open | High | Low | Value | Volume |
| $7.14 | $7.27 | $7.12 | $40.32M | 5.616M |
Buyers (Bids)
| No. | Vol. | Price($) |
|---|---|---|
| 3 | 9062 | $7.15 |
Sellers (Offers)
| Price($) | Vol. | No. |
|---|---|---|
| $7.16 | 6000 | 1 |
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| Last trade - 16.10pm 18/11/2024 (20 minute delay) ? |
| LYC (ASX) Chart |