What Happens To OTC Stocks
A question that I'm asked over and over again by new traders is what will happen to their OTCBB stock should it move from the OTCBB to a major exchange like the NASDAQ.
Unless some special arrangement has been made, and you will know this from your brokerage firm, your stock will automatically transition to the Nasdaq.
Investors call this a jumper stock. The odds are that your stock will increase in value once it starts trading on a major exchange because it's open to a whole new pool of investors.
If there is a change in the ticker symbol, the company will contact you about it by standard mail or through a brokerage firm like Scottrade.
Time for some brutal honesty. You are George Bush stupid if you are investing in OTC stock you think will go to the NASDAQ.
Tom Cruise Crazy publishers will try and sell you an expensive subscription for stocks that go from the OTC to the Nasdaq. Jumpers that you can make 1,000%...3,500%, even 10,000% and more! Don't believe it. It's a scam.
In the hundreds of traders I've spoke with over the years, not one of them has told me that he made money from picking jumper stocks more than he lost.
Reality check. If the company was such a good company selling such a hot product, they never would have been listed on the OTCBB in the first place. They would have opted for an original listing on the Nasdaq in the first place. The cost for a listing on a major exchange is hardly more than a listing on the OTCBB. The only difference is the reporting requirements. The disclosure that the company must provide investors on a timely and regular basis.
There's the dark truth. The only reason a company lists on the OTCBB is precisely because they do not want to meet the stricter reporting requirements of a major exchange. They do not want to disclose to investors the truth about what's really going on.
The pink sheets is the only worse exchange on the planet. The OTCBB is one giant wanna be system set to favor scammers and bleed investors dry. More tomb stones exist in the Graveyard of Traders from the OTCBB market than any other market. Gambling in the OTCBB market is stupetarded. I should know, I had my life savings completely destroyed doing it by a company that was liquidated, and the CEO who is now in jail. This happens on major exchanges to but not nearly as much as the OTCBB.
Plus, think about this. The primary reason for investing in OTCBB was to get stocks cheap. Now that we are at a market bottom, many good companies listed on the major exchanges are at crazy OTCBB prices! Plus there's a lot less risk because stocks on the major exchanges have stricter disclosure and reporting laws they must follow than stocks listed on the OTCBB. So what is the advantage to the OTCBB at this present time? None. - 23310
Unless some special arrangement has been made, and you will know this from your brokerage firm, your stock will automatically transition to the Nasdaq.
Investors call this a jumper stock. The odds are that your stock will increase in value once it starts trading on a major exchange because it's open to a whole new pool of investors.
If there is a change in the ticker symbol, the company will contact you about it by standard mail or through a brokerage firm like Scottrade.
Time for some brutal honesty. You are George Bush stupid if you are investing in OTC stock you think will go to the NASDAQ.
Tom Cruise Crazy publishers will try and sell you an expensive subscription for stocks that go from the OTC to the Nasdaq. Jumpers that you can make 1,000%...3,500%, even 10,000% and more! Don't believe it. It's a scam.
In the hundreds of traders I've spoke with over the years, not one of them has told me that he made money from picking jumper stocks more than he lost.
Reality check. If the company was such a good company selling such a hot product, they never would have been listed on the OTCBB in the first place. They would have opted for an original listing on the Nasdaq in the first place. The cost for a listing on a major exchange is hardly more than a listing on the OTCBB. The only difference is the reporting requirements. The disclosure that the company must provide investors on a timely and regular basis.
There's the dark truth. The only reason a company lists on the OTCBB is precisely because they do not want to meet the stricter reporting requirements of a major exchange. They do not want to disclose to investors the truth about what's really going on.
The pink sheets is the only worse exchange on the planet. The OTCBB is one giant wanna be system set to favor scammers and bleed investors dry. More tomb stones exist in the Graveyard of Traders from the OTCBB market than any other market. Gambling in the OTCBB market is stupetarded. I should know, I had my life savings completely destroyed doing it by a company that was liquidated, and the CEO who is now in jail. This happens on major exchanges to but not nearly as much as the OTCBB.
Plus, think about this. The primary reason for investing in OTCBB was to get stocks cheap. Now that we are at a market bottom, many good companies listed on the major exchanges are at crazy OTCBB prices! Plus there's a lot less risk because stocks on the major exchanges have stricter disclosure and reporting laws they must follow than stocks listed on the OTCBB. So what is the advantage to the OTCBB at this present time? None. - 23310
About the Author:
Written By Sam Nielson. To discover more million dollar trader articles go to what happens to my stock when it goes from otc to nasdaq
posted by Mr. Forex at
12:56 AM
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