What Happens To OTC Stocks
Over the years, I've been asked a lot of questions. More than I can count. One question that keeps coming up is from traders who want to know what will happen to their OTCBB stock if it uplists to a major exchange like the Nasdaq.
Your brokerage firm (Scottrade, Etrade, etc.) or your post office will keep you informed of any special changes or actions you must take but usually, no action is needed on your part. Your shares will automatically convert into the new ticker symbol traded on the Nasdaq or major exchange.
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.
But let me be clear about something. You are stupid if you think you can pick jumpers and make money at doing this.
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 thousands of traders I've known over the years, not one of them made money at picking jumpers.
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.
Here's something to think about. The main reason people gamble in the OTCBB market is to get really cheap stocks. Now that we are at a market bottom, many good companies listed on major exchanges are at very low OTCBB like prices! - 23218
Your brokerage firm (Scottrade, Etrade, etc.) or your post office will keep you informed of any special changes or actions you must take but usually, no action is needed on your part. Your shares will automatically convert into the new ticker symbol traded on the Nasdaq or major exchange.
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.
But let me be clear about something. You are stupid if you think you can pick jumpers and make money at doing this.
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 thousands of traders I've known over the years, not one of them made money at picking jumpers.
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.
Here's something to think about. The main reason people gamble in the OTCBB market is to get really cheap stocks. Now that we are at a market bottom, many good companies listed on major exchanges are at very low OTCBB like prices! - 23218
About the Author:
By Sam Nielson. To find more expert trader articles go to what happens to my stock when it goes from otc to nasdaq
posted by X - Men @ 6:24 AM
0 Comments
0 Comments:
Post a Comment
Subscribe to Post Comments [Atom]
<< Home