NASD Notice to Members 96-32 - May 1996

Members Reminded to Use Best Practices When Dealing in Speculative Securities

Executive Summary

In recent months, NASD Regulation, Inc., has observed instances of sharp price changes and increases in trading activity in stocks of low-priced companies. In response, NASD Regulation is issuing this Special Notice to Members to emphasize to its members their obligations to customers, particularly when dealing in speculative securities.