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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.
Your brokerage firm (Scottrade, Etrade, etc.) or your post office will keep you informed of any special changes or actions you must take but usually, no action is needed on your part. Your shares will automatically convert into the new ticker symbol traded on the Nasdaq or major exchange.
Investors call this a jumper stock. The odds are that your stock will increase in value once it starts trading on a major exchange because it's open to a whole new pool of investors.
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.
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.
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.
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.
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.
Your brokerage firm (Scottrade, Etrade, etc.) or your post office will keep you informed of any special changes or actions you must take but usually, no action is needed on your part. Your shares will automatically convert into the new ticker symbol traded on the Nasdaq or major exchange.
Investors call this a jumper stock. The odds are that your stock will increase in value once it starts trading on a major exchange because it's open to a whole new pool of investors.
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.
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.
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.
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.
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.
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
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