Does this sound legit?
Discussion
A friend of mine (who I absolutely trust) has a friend (who I don't know from adam) who is a board member of a company about to list some ADRs on Nasdaq. Apparently a condition of listing on Nasdaq is that the company needs a few hundred shareholders, so they're giving away the minimum $5000 of shares to a couple of hundred people that said FOAF has been tasked with finding. I've given my name and a few family members because why not, free upside at the moment and it doesn't cost anything.
OTOH this does sound a bit too good to be true, doesn't it? Is this normal? If not, what's the angle? My guess would be someone contacting us after the listing asking for fees to convert the shares into ADRs or something like that....
OTOH this does sound a bit too good to be true, doesn't it? Is this normal? If not, what's the angle? My guess would be someone contacting us after the listing asking for fees to convert the shares into ADRs or something like that....
Somewhatfoolish said:
A friend of mine (who I absolutely trust) has a friend (who I don't know from adam) who is a board member of a company about to list some ADRs on Nasdaq. Apparently a condition of listing on Nasdaq is that the company needs a few hundred shareholders, so they're giving away the minimum $5000 of shares to a couple of hundred people that said FOAF has been tasked with finding. I've given my name and a few family members because why not, free upside at the moment and it doesn't cost anything.
OTOH this does sound a bit too good to be true, doesn't it? Is this normal? If not, what's the angle? My guess would be someone contacting us after the listing asking for fees to convert the shares into ADRs or something like that....
Sounds like scam to me and I would avoid personally but I’m not a risk taker OTOH this does sound a bit too good to be true, doesn't it? Is this normal? If not, what's the angle? My guess would be someone contacting us after the listing asking for fees to convert the shares into ADRs or something like that....
Charlie1986 said:
Somewhatfoolish said:
A friend of mine (who I absolutely trust) has a friend (who I don't know from adam) who is a board member of a company about to list some ADRs on Nasdaq. Apparently a condition of listing on Nasdaq is that the company needs a few hundred shareholders, so they're giving away the minimum $5000 of shares to a couple of hundred people that said FOAF has been tasked with finding. I've given my name and a few family members because why not, free upside at the moment and it doesn't cost anything.
OTOH this does sound a bit too good to be true, doesn't it? Is this normal? If not, what's the angle? My guess would be someone contacting us after the listing asking for fees to convert the shares into ADRs or something like that....
Sounds like scam to me and I would avoid personally but I’m not a risk taker OTOH this does sound a bit too good to be true, doesn't it? Is this normal? If not, what's the angle? My guess would be someone contacting us after the listing asking for fees to convert the shares into ADRs or something like that....
I’ve only had a very quick skim read of what I’m about to link, but the offer from your mates-mate doesn’t sound particularly legit.
https://www.investopedia.com/ask/answers/nasdaq-li...
https://listingcenter.nasdaq.com/assets/initialgui...
https://www.colonialstock.com/nasdaq-listings.htm
https://www.investopedia.com/ask/answers/nasdaq-li...
https://listingcenter.nasdaq.com/assets/initialgui...
https://www.colonialstock.com/nasdaq-listings.htm
105.4 said:
I’ve only had a very quick skim read of what I’m about to link, but the offer from your mates-mate doesn’t sound particularly legit.
https://www.investopedia.com/ask/answers/nasdaq-li...
https://listingcenter.nasdaq.com/assets/initialgui...
https://www.colonialstock.com/nasdaq-listings.htm
What I couldn't figure out is if that round lot shareholder thing in the last two links (which does indeed suggest listings need a minimum number of shareholders if I understand correctly) applies to non-US companies listing ADRs. https://www.investopedia.com/ask/answers/nasdaq-li...
https://listingcenter.nasdaq.com/assets/initialgui...
https://www.colonialstock.com/nasdaq-listings.htm
Somewhatfoolish said:
A friend of mine (who I absolutely trust) has a friend (who I don't know from adam) who is a board member of a company about to list some ADRs on Nasdaq. Apparently a condition of listing on Nasdaq is that the company needs a few hundred shareholders, so they're giving away the minimum $5000 of shares to a couple of hundred people that said FOAF has been tasked with finding. I've given my name and a few family members because why not, free upside at the moment and it doesn't cost anything.
OTOH this does sound a bit too good to be true, doesn't it? Is this normal? If not, what's the angle? My guess would be someone contacting us after the listing asking for fees to convert the shares into ADRs or something like that....
So no cost? OTOH this does sound a bit too good to be true, doesn't it? Is this normal? If not, what's the angle? My guess would be someone contacting us after the listing asking for fees to convert the shares into ADRs or something like that....
thebraketester said:
Somewhatfoolish said:
A friend of mine (who I absolutely trust) has a friend (who I don't know from adam) who is a board member of a company about to list some ADRs on Nasdaq. Apparently a condition of listing on Nasdaq is that the company needs a few hundred shareholders, so they're giving away the minimum $5000 of shares to a couple of hundred people that said FOAF has been tasked with finding. I've given my name and a few family members because why not, free upside at the moment and it doesn't cost anything.
OTOH this does sound a bit too good to be true, doesn't it? Is this normal? If not, what's the angle? My guess would be someone contacting us after the listing asking for fees to convert the shares into ADRs or something like that....
So no cost? OTOH this does sound a bit too good to be true, doesn't it? Is this normal? If not, what's the angle? My guess would be someone contacting us after the listing asking for fees to convert the shares into ADRs or something like that....
There are minimum numbers of shares, value and shareholders but giving them away to be able to get listed would set my alarm bells ringing.
https://www.investopedia.com/ask/answers/nasdaq-li...
https://www.investopedia.com/ask/answers/nasdaq-li...
Somewhatfoolish said:
A friend of mine (who I absolutely trust) has a friend (who I don't know from adam) who is a board member of a company about to list some ADRs on Nasdaq. Apparently a condition of listing on Nasdaq is that the company needs a few hundred shareholders, so they're giving away the minimum $5000 of shares to a couple of hundred people that said FOAF has been tasked with finding. I've given my name and a few family members because why not, free upside at the moment and it doesn't cost anything.
OTOH this does sound a bit too good to be true, doesn't it? Is this normal? If not, what's the angle? My guess would be someone contacting us after the listing asking for fees to convert the shares into ADRs or something like that....
Definitely seems legit ! OTOH this does sound a bit too good to be true, doesn't it? Is this normal? If not, what's the angle? My guess would be someone contacting us after the listing asking for fees to convert the shares into ADRs or something like that....
chip* said:
So this "board member" (and all existing shareholders) is willing to give up equity / accept dilution on his stake for absolutely nothing?......
It does stretch credulity; it's a going concern but they can't find anyone willing to actually pay for the shares, so even less legitimacy than penny shares. hidetheelephants said:
It does stretch credulity; it's a going concern but they can't find anyone willing to actually pay for the shares, so even less legitimacy than penny shares.
Even penny shares have to be paid for.I’ve never heard of $1m in an investable form being given just away to total strangers.
I’m not sure I see this as a scam though more like the 200 strangers will be asked to give names and then an invoice will appear.
Sounds dodgy to me. It is true that you need a minimum number of shareholders to list on Nasdaq, but it is also true that there is a minimum price:
“Nasdaq Capital Market companies are required to meet a net income standard of at least $750,000, a minimum public float of 1,000,000 shares, at least 300 shareholders, and a share bid price of at least $4 (with certain exceptions)” (Investopedia)
Elsewhere there seem to be higher requirements, so it’s obviously complicated, but seems unlikely to me that a stock exchange would be satisfied by companies giving away free shares to meet what is intended to be a set of minimum requirements for being a genuinely tradeable share.
“Nasdaq Capital Market companies are required to meet a net income standard of at least $750,000, a minimum public float of 1,000,000 shares, at least 300 shareholders, and a share bid price of at least $4 (with certain exceptions)” (Investopedia)
Elsewhere there seem to be higher requirements, so it’s obviously complicated, but seems unlikely to me that a stock exchange would be satisfied by companies giving away free shares to meet what is intended to be a set of minimum requirements for being a genuinely tradeable share.
On a slightly different note, four years ago I and some colleagues were, through a business contact, offered the opportunity to buy shares in a private company at 40p each where the company was due to float a year later for at least £2 a share (or so they said). We were buying shares from the existing owners and not newly issued shares.
I bought some, and the company did indeed float, but it floated at......40p. The shares then fell to 4p. They are now 26p.
The whole 'buy now before it floats' thing was essentially a ruse to allow the existing owners to cash out of some shares pre float.
No one sells shares cheap or gives them away for free. Ever.
I bought some, and the company did indeed float, but it floated at......40p. The shares then fell to 4p. They are now 26p.
The whole 'buy now before it floats' thing was essentially a ruse to allow the existing owners to cash out of some shares pre float.
No one sells shares cheap or gives them away for free. Ever.
As I understand things, any ADR listing on NASDAQ requires a sponsoring bank (likely US bank). If there was a req't for a minimum number of shareholders the sponsoring bank would have a process to facilitate this. There's no way any process would allow $1 min to be 'given away'. It's definitely a scam. Also, whilst at first glance there doesn't seem to be a downside for the OP, I personally wouldn't go near this - surely lesson 1 of life....if something looks too good to be true, etc.
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