you have ALWAYS been able to trade shares "off the market" so to speak. some investors (vs. traders) receive the ACTUAL PAPER SHARES that they buy. this is like when grandpa buys a company and holds it for 30 years. he receives the actual paper shares we are so used to brokerage holding our shares in electronic form, we forget that the paper shares can be exchanged for example, and that has always been legal. if i buy 10k shares of ABC and receive the shares in the mail. i can turn around and sell all or part of them at any price the buyer is willing to pay that's always been legal. it's just not done that often. usually, exchange of the paper shares happens with gifts between relatives, upon death, etc. but it is perfectly legal to exchange shares between parties.
Was going to start a topic about this. I had never heard about it . I guess I am not following WallStreet news closely enough. I can' t believe this is happening. These exchanges should be shut down and banned . Period. I believe the so called lack of supply in the market may be caused in part by these over the counter trades. How can this be legal ? The stock market becomes a farce if institutions can trade so easily without going through regular exchanges and leaving footprints. This thing is going to blow up , look for a backlash once the market crashes and new revelations of shenanigans. I wouldjust write to your congressman to let them know that these outfits must be shut down or comply with the exact same regulations as the exchanges