Penny Stock Reform Act of 1990

Summary

Penny Stock Reform Act of 1990 - Amends the Securities Exchange Act of 1934 to define "penny stock" securities and to extend regulatory authority over persons engaged in penny stock activities. Prescribes requirements for brokers and dealers in penny stock transactions. States that any contract violating certain rules prohibiting fraudulent, deceptive, or manipulative practices shall be deemed automatically void. Authorizes the Securities and Exchange Commission to designate rules whose violation shall not automatically render a contract void. Amends the Securities Act of 1933 and the Securities Exchange Act of 1934 to require specified disclosures regarding business plans and purposes and the identity of merger or acquisition prospects (thereby prohibiting blank check and blind pool securities activities in penny stock transactions). Amends the Securities Exchange Act of 1934 to require registered securities associations to: (1) review penny stock transactions for compliance with this Act; and (2) establish a toll-free consumer hotline regarding broker-dealer disciplinary history.

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Documents

4 official files

• Reported in House (text)

  Reported in House · EN

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• Introduced in House (text)

  Introduced in House · EN

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• Reported to House with amendment(s)

  summary · EN · 23 July 1990

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• Introduced in House

  summary · EN · 4 April 1990

  Open at official source

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