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Can a company stop the sale of stock?
If a company's stock is on the open market, can the board of directors, or whoever, prevent the purchase of stock if they deem the new ownership is detrimental to the company's image?
Just curious if this type of thing is covered in basic disclosure statements?
thanks.
3 Answers
- jeff410Lv 71 decade agoFavorite Answer
If they accumulate enough stock to seek a board seat or seek control of the company the board can get defensive, if the shareholders intentions are deemed not to be in the best interests of the other shareholders and the company's objectives and strategy. Any investor who has over 5 percent of the stock must disclose their intentions for owning the stock in a 13-d filing with the SEC.
- Common SenseLv 71 decade ago
It's rare that a company sells stock on the market. Most trades are between buyers and sellers that are not connected to the company.
A company can fight a hostile take over.... but that's a whole different story.
- 1 decade ago
only if the buyer is buying the shares from the company itself. Otherwise, no. That is why hostile takeover bids work.
