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.
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 thousands of traders I've known over the years, not one of them made money at 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.
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.
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. - 22871
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 thousands of traders I've known over the years, not one of them made money at 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.
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.
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. - 22871
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
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