Quotations can be integral to fraudulent schemes involving microcap securities.
The Commission is concerned about the role of these quotations because most market makers for unlisted securities may publish quotations without reviewing information about the issuer. Microcap securities often are thinly-traded and their issuers have minimal or no assets. Also, the reproposal applies primarily to priced quotations. This narrowed scope responds to commenters' concerns and should reduce compliance costs. Market makers must have a reasonable basis for believing that the information is accurate and from reliable sources.