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Reverse Mergers and Chinese Stocks
Some of you have recently had issues with investments you have made in stocks of Chinese companies. Stocks such as Advanced Battery Technologies (ABAT), Zhongpin (HOGS) , American Oriental Bioengineering (AOB) and others became publicly traded in the US using a method called a reverse merger. This is legitimate type of merger but it allowed them to bypass some of the SEC scrutiny a company usually receives when it applies to become listed on the US exchanges.

If you'd like to understand more about reverse mergers and the risks involved in investing in stocks such as these, you might be interested in a very good bulletin that the SEC Office of Investor Education and Advocacy has put out. Reverse Mergers

It is very thorough and very easy to read and understand. If you have or are considering an investment in any of these stocks, I think you'll find it very interesting.

--
Laurie Frederiksen
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Thanks for info. on the Reverse mergers, interesting information.
 
Sapna
 

Date: Thu, 29 Sep 2011 10:35:17 -0400
From: laurie@bivio.biz
Subject: [club_cafe] Reverse Mergers and Chinese Stocks
To: club_cafe@bivio.com

Some of you have recently had issues with investments you have made in stocks of Chinese companies.  Stocks such as Advanced Battery Technologies (ABAT),  Zhongpin (HOGS) , American Oriental Bioengineering (AOB)  and others became publicly traded in the US using a method called a reverse merger.  This is legitimate type of merger but it allowed them to bypass some of the SEC scrutiny a company usually receives when it applies to become listed on the US exchanges.

If you'd like to understand more about reverse mergers and the risks involved in investing in stocks such as these, you might be interested in a very good bulletin that the SEC Office of Investor Education and Advocacy has put out.   Reverse Mergers

It is very thorough and very easy to read and understand.  If you have or are considering an investment in any of these stocks, I think you'll find it very interesting.

--
Laurie Frederiksen
Invest with your friends!
www.bivio.com

Become our Facebook friend!  www.facebook.com/bivio
Follow us on twitter!  www.twitter.com/bivio