What Happens When Stock Moves From OTC to NASDAQ
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.
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.
But let's be straight here. You are an idiot if you are buying OTCBB stocks hoping they will uplist to a major exchange.
Con-vest publishing companies are more than happy to sell you a subscription to their OTC to Nasdaq stocks. Don't be a sucker.
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.
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. - 23204
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.
But let's be straight here. You are an idiot if you are buying OTCBB stocks hoping they will uplist to a major exchange.
Con-vest publishing companies are more than happy to sell you a subscription to their OTC to Nasdaq stocks. Don't be a sucker.
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.
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. - 23204
About the Author:
Written By Sam Nielson. To find more top trader articles go to what happens to my stock when it goes from otc to nasdaq
posted by X - Men @ 2:26 AM
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