What happens after SEC revokes the registration of a stock?

External question — Personal Finance Stack Exchange Author: TJNI4fmgOSiB2yFX Original post: https://money.stackexchange.com/questions/144715 License: CC BY-SA 4.0 — https://creativecommons.org/licenses/by-sa/4.0/ Adaptation: HTML converted to plain text; contact email addresses removed. Looking at United Development FUnding Income Fund IV (which was a listed REIT on Nasdaq which subsequently traded OTC): This security had its registration revoked by SEC on 2020.08.13, according to last page of https://www.sec.gov/litigation/opinions/2020/34-89535.pdf However, on 2021.09.23, UDF says United Development Funding IV (“UDF IV”) announced today that on August 9, 2021 its board of trustees authorized a cash distribution of $0.065 per share (Link http://www.udfonline.com/united-development-funding-iv-and-united-development-funding-income-fund-v-announce-distributions-aug12/ ) Q1 - What happens after a security registration is revoked by SEC? (I was surprised that, there can be cash distributions for a security which has its registration revoked.) Q2 - Separately: SEC says Broker-dealers may not execute any trades in stocks whose registration has been revoked pursuant to Section 12(j). I guess this means existing shareholders can still trade with counterparties other than broker-dealers?)

External answer — Personal Finance Stack Exchange Author: exchangetech Original post: https://money.stackexchange.com/a/144752 License: CC BY-SA 4.0 — https://creativecommons.org/licenses/by-sa/4.0/ Adaptation: HTML converted to plain text; contact email addresses removed. Q1. Based on this article "Once registration has been revoked, the stock’s ticker will be deleted. Shareholders will still be shareholders but in a private company. Their stock will be extremely illiquid, and its value will be difficult to determine, as there is no public market for it." Q2. Correct, broker-dealers may not execute any trades resulting in the stock to be very illiquid and the chances that broker-dealers execute stocks of those kinds are 50/50 chance. There are changes though taking effect on the OTC markets coming September 28th. More information here