Market regulators put a stop to wildly speculative trading on a penny stock from a defunct Grand Rapids-based company that investors mistakenly linked to a Tesla Motors acquisition.
The Financial Industry Regulatory Authority (FINRA) ordered investors to halt trading on the old shares of Grand Rapids-based auto supplier Riviera Tool Co.
The stop-trade order came about 12 minutes after the Free Press reported late Thursday afternoon that confused investors had plunged cash into potentially worthless stock in the wake of a Tesla acquisition of a similarly named firm.
What happened was fairly simple. Riviera Tool Co. ceased to exist in 2007, and its shares were delisted from the American Stock Exchange following a transaction financed by Laurus Master Fund Ltd.
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