Saturday, August 18, 2012

Things You Must Know About OTC Bulletin Board

By Thomas Anderson


If you are looking for volume info, real-time quotes and last-sale prices for over the counter safeties, visit the OTC Bulletin Board or OTCBB. This is an electronic inter-dealer quotation system for safeties that are not detailed over at NASDAQ, NYSE and other broader securities exchange. Opened back in the 1990s, its aim is to provide the much needed transparency in the OTC market. Companies whose capitalization has actually fallen below the minimum requirement of the broader exchange will certainly wind up at the OTC Bulletin Board and contrary to common beliefs, it is now greatly monitored by the SEC which supplies a specific degree of protection to investors. A great deal of risks are still present in penny stock financial investments however so are in additional safeties.

What are the Reporting Requirements of OTC Bulletin Board?

Compared to pink piece penny stocks, the OTCBB has been subject to SEC reporting requirements because July 2000. This reporting features yearly and quarterly economic details and additional essential information. You can easily discover these filings with the SEC's on-line database called EDGAR because it is publicly available. There is indeed substantial transparency with OTCBB securities compared with the pink pieces, which is absolutely unmonitored.

What are the Attributes of OTC Bulletin Board?

There are a lot of features that make OTC Bulletin Board a favorable location to invest. Because it is monitored by the SEC, there is greater transparency amongst companies and you can quickly locate details through their list. Here are more features:

You have selection of 3,300 or even more safeties

OTCBB has more than 230 active Market Producers

Volume details in domestic and foreign safeties, ADRs, quotes and prices are electronically sent in real-time

Signals of interest and prior-day trading activity are featured in DPPs

These functions will certainly offer you some edge in investing in penny stocks and with the Internet, all these are merely within your reach.

Just what are the Protections Given to Investors in OTC Bulletin Board?

SEC Guideline 15g-2 makes it "unlawful for a broker or dealership to effect a transaction in any sort of penny stock for or with the account of a customer unless, prior to effecting such transaction, the broker or dealer has furnished to the consumer a document having the info set forth in Timetable 15G, Regulation 15g-100 and has acquired from the customer a manually signed and dated written acknowledgment of receipt of the document."

Due to the dangerous nature in purchasing over the counter penny stocks, this rule was produced and it without a doubt offered ample security to investors. Although it is still risky to buy penny stocks, the active engagement of the SEC means that investors can easily anticipate government security and its investing environment is not as wild as it used to be.




About the Author:



No comments:

Post a Comment