What Happens When Stock Moves From OTC to NASDAQ
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.
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).
This scenario is called a jumper. There is a good chance that your stock shares will gain in value because it opens your stock up to a whole new set of investors who only trade on major exchanges.
If any change in the ticker symbol takes place, your brokerage firm (i.e. ETrade, Scottrade, etc.) will contact you via your trading console and/or by regular 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.
Con-vest publishing companies are more than happy to sell you a subscription to their OTC to Nasdaq stocks. Don't be a sucker.
I've met thousands of traders over the years and not a single trader made money at regularly 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.
Enlightening truth: the primary reason a company lists on the OTC instead of the NASDAQ is to not have to meet the higher reporting requirements for that listing. They really don't want to be bothered with letting investors know what is REALLY going on behind all the PRs they release.
While not as bad as the pink sheets, the OTCBB exchange is filled with fraudulent companies who wouldn't think twice about posting false PRs and scamming you out of your money. Investing in OTCBB stocks is a fools game. Over the long run, you will go broke like everyone else who has tried. I should know. I speak from personal trading experience.
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. - 23217
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).
This scenario is called a jumper. There is a good chance that your stock shares will gain in value because it opens your stock up to a whole new set of investors who only trade on major exchanges.
If any change in the ticker symbol takes place, your brokerage firm (i.e. ETrade, Scottrade, etc.) will contact you via your trading console and/or by regular 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.
Con-vest publishing companies are more than happy to sell you a subscription to their OTC to Nasdaq stocks. Don't be a sucker.
I've met thousands of traders over the years and not a single trader made money at regularly 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.
Enlightening truth: the primary reason a company lists on the OTC instead of the NASDAQ is to not have to meet the higher reporting requirements for that listing. They really don't want to be bothered with letting investors know what is REALLY going on behind all the PRs they release.
While not as bad as the pink sheets, the OTCBB exchange is filled with fraudulent companies who wouldn't think twice about posting false PRs and scamming you out of your money. Investing in OTCBB stocks is a fools game. Over the long run, you will go broke like everyone else who has tried. I should know. I speak from personal trading experience.
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. - 23217
About the Author:
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 X - Men @ 3:50 AM
0 Comments
0 Comments:
Post a Comment
Subscribe to Post Comments [Atom]
<< Home