Hi I am a new member to the forum and I have a question. I want to buy into a certain overseas company that is traded on the market (which market it is I do not know). I looked at this company's website but they do not say what market, and I searched their symbol but only came up with "Other OTC". So what does this mean? Appearantly I cannot trade this company's stock on a service such as Ameritrade or Etrade. Does this mean I must use a broker or is their an online firm which I can use?
Unless you have ACTUAL GUARANTEED INSIDER INFORMATION on this stock (you never heard me say that), don't put money in OTC stocks. You will lose your shirt. They are a scam. The person who gave you the tip is trying to dump their shares on an even bigger sucker than they were when they bought them. Don't let it be you.
majority of these stocks keep selling shares into the float. They live off of investors! Stay away from them
Okay but can anyone offer some knowledge how I can do this? I've checked around the net and it seems I might have to deal with a broker in person to do what I am planning. Don't worry guys, it's not a big investment. Two weeks salary, WOW. EDIT: I'm prepared to lose on this one, but could you elaborate by "selling into the float"?
If there's been any sort of run up in the stock... and I mean any sort of run up.... ever..... since it's existence--don't buy the stock. If you are getting in for the initial run you can make an absolute killing--but if it's anything after that then 9.9/10 you're going to see the stock slowly lose bids, the low bids will be hit, shorters will come in, and the stock, and your acct, will shrink dramatically.
After thinking it over I think the best decision is to let this one pass... the trouble of finding a broker for this particular stock's exchange and the amount I would have invested doesn't seem worth it. But I will be watching this one... No doubts.
I noticed an ad in Active Trader which said IB handles OTC trades for $20 plus a hundredth of a cent a share (or something like that). You should definitely stay away from OTC, though. Just send me your money instead!
I'll point out that "OTC" technically refers to NASDAQ stocks as well, and still appears in front of NASDAQ tickers in news stories from some sources. The stocks you want to stay away from are those that trade on the OTCBB (Bulletin Board) or the "Pink Sheets", which stocks have very lax/no reporting and oversight, very few actual buyers and sellers, and dealers that provide whatever liquidity they feel like, at an exhorbitant cost.