What Happens To OTC Stocks
Out of the thousands of questions I've been asked over the years, one question keeps coming up that pisses me off. A bright eye'd newbie trader wants to know what will happen to his OTCBB stock if it gets uplisted to a major exchange like the NASDAQ.
In most cases, there's nothing you need to do on your part. Your existing stock shares will be converted into the new shares traded under the new ticker symbol on the major exchange (i.e. 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.
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 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! - 23199
In most cases, there's nothing you need to do on your part. Your existing stock shares will be converted into the new shares traded under the new ticker symbol on the major exchange (i.e. 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.
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 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! - 23199
About the Author:
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 @ 3:29 AM
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