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.
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.
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 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.
Time for another dose of reality. Drink up. It doesn't cost that much more for a listing on a major exchange as it does on the OTCBB. If the company was such a good company, selling such a hot product, that had this great potential to jump from the OTC to the Nasdaq, then why didn't they just list on the Nasdaq in the first place? Hmmmmm? The main different between the two listings is not money, but the additional reporting requirements. Companies that list on the OTCBB don't want to disclose to investors what's really going on behind the PRs and they sure as hell don't want to provide this information on anything remotely close to a timely and regular basis.
That's the anti-moron truth. The main reason for a company to list on the OTC and not the NASDAQ in the first place is that they do not want to meet the stricter reporting requirements of a major exchange. They do not want investors looking at their financial statements. They do not want investors to know what is 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.
Look, we are at a market bottom. There is no reason to gamble in the OTCBB market when you can buy stocks that trade on major exchanges for near OTCBB prices! Plus you have the additional protection that goes with stocks that are listed on major exchanges. - 23305
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.
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 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.
Time for another dose of reality. Drink up. It doesn't cost that much more for a listing on a major exchange as it does on the OTCBB. If the company was such a good company, selling such a hot product, that had this great potential to jump from the OTC to the Nasdaq, then why didn't they just list on the Nasdaq in the first place? Hmmmmm? The main different between the two listings is not money, but the additional reporting requirements. Companies that list on the OTCBB don't want to disclose to investors what's really going on behind the PRs and they sure as hell don't want to provide this information on anything remotely close to a timely and regular basis.
That's the anti-moron truth. The main reason for a company to list on the OTC and not the NASDAQ in the first place is that they do not want to meet the stricter reporting requirements of a major exchange. They do not want investors looking at their financial statements. They do not want investors to know what is 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.
Look, we are at a market bottom. There is no reason to gamble in the OTCBB market when you can buy stocks that trade on major exchanges for near OTCBB prices! Plus you have the additional protection that goes with stocks that are listed on major exchanges. - 23305
About the Author:
Written By Sam Nielson. To read more top trader articles go to what happens to my stock when it goes from otc to nasdaq
posted by Mr. Forex at
3:09 AM
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