2006-12-06 02:36:17 · 11 answers · asked by markmccarrell 2 in Business & Finance ➔ Investing
Some are and some are not. They are traded through sponsoring brokers rather than stock exchanges. The main difference from an investors point of view is liquidity and bid/ask spread. There are currently 4807 stocks traded through the "pink sheets" and 238 on the bulletin board. Some are dully listed on both, about 3161. Many that are traded come under the heading penny stocks. They sell for a few cents a share. They in general are not safe investments.
There are however some top investment class companies whose stocks can only be purchased OTC. One is Nestle. Currently trades at about $88.90. Many foreign stocks like Nestle can only be purchased OTC. They are not traded on domestic exchanges.
When buying or selling stocks OTC, one must be very careful about the liquidity of the market because supply and demand may just not be there. And the bid/ask spread can be very great.
Sometimes on some stocks, it is very difficult to even find a bid for a stock if you want to sell.
2006-12-06 03:11:20 · answer #1 · answered by Anonymous · 2⤊ 0⤋
Any stock can go bad, but something to remember is that the major exchanges have financial reporting and stability guidelines for companies listed there. If a company can't or won't be listed on a major stock exchange it is often because they can't qualify, or in some cases no longer qualify and were delisted.
OTC stocks are simply very risky companies. I've made a few bucks from some and lost a few more bucks with others. It is part of the territory. If you are not prepared for the extra risks, stay far away from them.
2006-12-06 02:45:05 · answer #2 · answered by Rabbit 7 · 2⤊ 0⤋
Hey,
Penny stocks, also known as cent stocks in some countries, are common shares of small public companies that trade at low prices per share. They are notoriously risky but if you follow a special method I've learned you can earn good money at almost no risk. This is the site I use: http://pennystocks.toptips.org
I definitely recommend subscribing to this site in particular. Very good research, quality stocks. I was a bit weary of penny stocks from all the bad hype they receive but this guy is pretty legit. He's put my mind at ease with a lot of the fears I've had. I especially like that he doesn't send out announcements left and right. I've signed up for other websites that fill my in-box with one company after the other. I don't know where to even start with so many choices in front of me! Nathan sends me one idea a week and that's all I need. Working so many hours during the week leaves me with very little time when I get home to start doing tons of penny stock research. I'm always eager to see what Nathan's next suggestion is each Friday and I love having time on the weekend to do my research.
As said above if you want to make money with penny stocks you have to follow some proven methods. This one in my opinion is the best: http://pennystocks.toptips.org
2014-09-22 08:42:06 · answer #3 · answered by Anonymous · 0⤊ 0⤋
You can buy any number of shares you like. Remember that in addition to the amount for the shares, you will have to pay a commission to the broker. This usually runs anywhere from $10 to $50. The cost basis is the total you paid for the shares plus the broker fee. If you buy one share at $10, with a $50 fee, then that share cost you $60. It will be very hard to make a profit on that. If you buy 100 shares at $10, plus a $50 fee, then the total cost is $1050, or $10.50 each. You would show some profit if you sold it at $10.51, which is much more likely than $60. I'm assuming here that BSE does not stand for bovine spongiform encephalitis in this case...
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2016-04-14 10:22:31 · answer #4 · answered by Anonymous · 0⤊ 0⤋
OTC stocks are stocks bought over the counter without receiving any receipt, it can't be return but when you purchase an item you need to be very careful as to what kind of stocks are on them. There are no guarantee of exchanged.
2006-12-06 02:39:57 · answer #5 · answered by problemsolver86 3 · 0⤊ 1⤋
OTC stocks are from companies that don't qualify for listing on a stock exchange. They are typically manipulated by scammers, particularly through spam email, so no, I wouldn't buy them.
2006-12-06 06:45:47 · answer #6 · answered by Edna S 1 · 0⤊ 0⤋
I've made a nice profit on a couple of suggestions he's given and plan to start trading his ideas a lot more. I definitely recommend subscribing to https://tr.im/pennystocks
Very good research, quality stocks. I was a bit weary of penny stocks from all the bad hype they receive but this guy is pretty legit. He's put my mind at ease with a lot of the fears I've had.
2016-01-18 00:19:03 · answer #7 · answered by Karisa 3 · 0⤊ 0⤋
Over the Counter stock - if you know the stock and have done some research on the stock you want to buy it can be safe - do not invest in stocks unless you can loss every dime of the investment !!!!!
2006-12-06 02:40:48 · answer #8 · answered by ? 3 · 1⤊ 0⤋
1
2017-02-19 15:27:30 · answer #9 · answered by Anonymous · 0⤊ 0⤋
Do not waste your time with these, you need to be in dividend invested stocks, ones that actually pay you to own them. Here are some good ones. xom,dow,eop,ggp,
good luck partner
2006-12-06 04:12:46 · answer #10 · answered by godzillasagoodman 2 · 0⤊ 1⤋