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.
Unless some special arrangement has been made, and you will know this from your brokerage firm, your stock will automatically transition to the Nasdaq.
Traders call this a jumper. Your shares will gain in value and they will automatically start trading on the NASDAQ.
If a change occurs in the ticker symbol, your brokerage house (Scottrade, Ameritrade, and so on) will contact you by your trading account and by regular snail mail.
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.
I've met thousands of traders over the years and not a single trader made money at regularly picking jumpers.
Time for a splash of cold water on your face to bring you out of Fantasy Land. There is not a big cost different between a NASDAQ listing and an OTC listing. If this hot, insider tip company was making so much money selling such a hot product then why didn't they just list on the NASDAQ in the first place? Why even list on the OTCBB? The reason is not the cost. The reason is the reporting requirements. Companies that list on the OTCBB don't want to provide you with timely, behind the scenes financials that were audited by an independent party. That should scare you completely away from OTCBB listed stocks.
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 only exchange fraught with more danger than the OTCBB is the pink sheets. But still, the OTCBB has thousands of fraudulent companies listed on it that will be delisted within a year and the CEO brought up on fraud charges by the SEC. Over many years, investing in the OTCBB because you want to bag a jumper stock will make you go broke. I should know, it happened to me. Yes, I'm a former jumper stock investor. As the saying goes, he who has grabbed a bull by the tail knows twice as much as he who never has. Don't go grab the bull by the tail. Learn from my painful experience.
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! - 23221
Unless some special arrangement has been made, and you will know this from your brokerage firm, your stock will automatically transition to the Nasdaq.
Traders call this a jumper. Your shares will gain in value and they will automatically start trading on the NASDAQ.
If a change occurs in the ticker symbol, your brokerage house (Scottrade, Ameritrade, and so on) will contact you by your trading account and by regular snail mail.
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.
I've met thousands of traders over the years and not a single trader made money at regularly picking jumpers.
Time for a splash of cold water on your face to bring you out of Fantasy Land. There is not a big cost different between a NASDAQ listing and an OTC listing. If this hot, insider tip company was making so much money selling such a hot product then why didn't they just list on the NASDAQ in the first place? Why even list on the OTCBB? The reason is not the cost. The reason is the reporting requirements. Companies that list on the OTCBB don't want to provide you with timely, behind the scenes financials that were audited by an independent party. That should scare you completely away from OTCBB listed stocks.
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 only exchange fraught with more danger than the OTCBB is the pink sheets. But still, the OTCBB has thousands of fraudulent companies listed on it that will be delisted within a year and the CEO brought up on fraud charges by the SEC. Over many years, investing in the OTCBB because you want to bag a jumper stock will make you go broke. I should know, it happened to me. Yes, I'm a former jumper stock investor. As the saying goes, he who has grabbed a bull by the tail knows twice as much as he who never has. Don't go grab the bull by the tail. Learn from my painful experience.
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! - 23221
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 X - Men @ 2:35 AM
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