Find the best financial services for you at: SMARTFINANCESOLUTIONS.NET - What are some reasons that a brokerage might put a restriction on a security? - Normally, I can buy/sell via Scottrade's online platform. Lately, I frequently have a security locked, where I try to place a trade on it but cannot. It's not a small cap/pink sheet company. It's not on the verge of bankruptcy. Right now, though, there is an enormous amount going on behind the scenes with possibility of both taking over a new co, or being taken over, there was recently a new debt offering, and one of the major shareholders is raising a fuss trying to get a bigger chunk of the co. than the company's debt agreements will allow. Just what are the possible causes of a security being restricted to online trades (where you have to actually get on the phone w/ the broker to place a trade)? Could this be a sign that one of the takeovers is in progress, that the feisty shareholder has gotten his way, or that the company is issuing even more debt/shares to fund its takeover attempts? -
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