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.
Traders call this a jumper. Your shares will gain in value and they will automatically start trading on the NASDAQ.
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.
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 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.
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.
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. - 23229
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 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.
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 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.
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.
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. - 23229
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
posted by X - Men @ 5:48 AM
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