What is a Threshold Security?
• five consecutive settlement days at a registered clearing agency (e.g., National Securities Clearing Corporation (NSCC));15 • totaling 10,000 shares or more; and • equal to at least 0.5% of the issuer’s total shares outstanding.16 Threshold securities only include issuers registered or required to file reports with the Commission (“reporting companies”).17 Therefore, securities of issuers that are not registered or required to file reports with the Commission, which includes the majority of issuers on the Pink Sheets,18 cannot be threshold securities. This is because the SROs need to look to the total outstanding shares of the issuer in order to calculate whether or not the securities meet the definition of a “threshold security.” For non-reporting companies, reliable information on total outstanding shares is difficult to determine. 2. Who is Responsible for Identifying Threshold Securities? Regulation SHO requires the SROs to disseminate a daily list of threshold securities where s
Related Questions
- If a threshold security also qualifies as an "owned" security within the meaning of Rule 203(b)(2)(ii), when should the firm close out the short position: after the 13th consecutive settlement day; or the day that is 35 days after the trade date?
- What is Regulation SHO Threshold Security List?
- What is a Threshold Security?
