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Stock Broker Compensation

 
 
gollum
 
Reply Sun 24 May, 2009 11:51 am
A stock brokerage firm may be the sole dealer in one or more over-the-counter stocks. In such a case if a broker with that firm pitches a stock to a prospect, does he or she have to reveal his total compensation on the transaction?
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Type: Question • Score: 0 • Views: 1,856 • Replies: 3
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Mame
 
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Reply Sun 24 May, 2009 02:04 pm
@gollum,
No, not to a prospect. That's none of their business. They could be getting nothing, for all anyone knows (not that that's likely).

I do know the Company's Board has to disclose to the public the salary and how many shares/options/warrants the Directors and Officers get, but don't remember seeing the details of their deal with the brokerage company in there.

Go to SEDAR and look up a Company's Documents and look for their annual or quarterly report and you'll see what documentation is available.
gollum
 
  1  
Reply Sun 24 May, 2009 02:38 pm
@Mame,
Mame-
Thank you.

I believe you live in Canada and have answered with respect to Canadian law. I was interested in United States law but I failed to specify that. My fault.
Mame
 
  1  
Reply Mon 25 May, 2009 08:16 am
@gollum,
They have strict rules in the US, as well, so should be able to find out. Companies issue news releases and post them on their websites. They announce private placements, flow-through deals, non-brokered financings, etc., and may contain the information you are looking for. I'd start there. And I knew you were in the US - many of the regs are the same.
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