| What Happens When Companies Get Listed On the NASDAQ |
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| Written by Sam Nielson |
| Saturday, 22 August 2009 10:47 |
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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.
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. 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 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'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. I've met thousands of traders over the years and not a single trader made money at regularly picking jumpers. 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. 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. DISCLAIMER: This article is provided as information only and is not to be taken as financial advice. By Sam Nielson. To discover more expert trader articles go to what happens to my stock when it goes from otc to nasdaq |