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.
Unless some special arrangement has been made, and you will know this from your brokerage firm, your stock will automatically transition to the 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 there is a change in the ticker symbol, the company will contact you about it by standard mail or through a brokerage firm like Scottrade.
But let me be clear about something. You are stupid if you think you can pick jumpers and make money at doing this.
Slick con artists and their publishing companies will try and sell you on some alert service that supposedly has a guaranteed track record at picking jumpers but they are lying. Every last one of them.
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.
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. - 23159
Unless some special arrangement has been made, and you will know this from your brokerage firm, your stock will automatically transition to the 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 there is a change in the ticker symbol, the company will contact you about it by standard mail or through a brokerage firm like Scottrade.
But let me be clear about something. You are stupid if you think you can pick jumpers and make money at doing this.
Slick con artists and their publishing companies will try and sell you on some alert service that supposedly has a guaranteed track record at picking jumpers but they are lying. Every last one of them.
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.
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. - 23159
About the Author:
Written By Sam Nielson. To find more million dollar trader articles go to what happens to my stock when it goes from otc to nasdaq
posted by X - Men @ 12:56 AM
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