What is an over -the -counter stock?
Over-the-Sucher Shares is a stock that is not listed on any of the organized exchanges and therefore does not deal with these stock exchanges. Instead, shares of this type are bought and sold between brokers and sellers, usually using electronic technology. There are four common stores in the United States where it is possible to sell and buy over -the -counter stocks using a broker.
Two of the stores, where over -the -counter offerings and trading take place, are associated with NASDAQ. These two places, known as the National Market and the SmallCap market, focus on specific stock option classes. Some financial experts ask if the national and small markets should actually be identified as stores for over -the -counter stocks, because NASDAQ is considered to be a stock exchange and a dealer network. The national market deals with large shares that do not deal with most other exchanges, with an emphasis on fluid reserves.
The SMALLCAP market focuses on over -the -counter stock options that are issued by companies consideredfor starting in the relevant industries. Shares traded on this market are often relatively unknown at present, but they show a great promise that they will become more significant over time. Investors often look at the Smallcap market as a way of identifying stock options with excellent prospects than the vast majority of investors will discover.
The third socket is known as the bleak board or Father of the Bulletin Board. This socket offers a wide range of electronic citations about the current activity of different types of over -the -counter stocks, but tends to have a wider range than national or small markets. The last option for identifying and trading with over -the -counter stocks is the use of pink sheets, known for providing information about the lower level stocks. There is a somewhat limited division with Tje's outlets in terms of the availability of electronic quotation marks. Most companies traded in this outlet are not POvinna to submit and update your financial data with the Securities and Exchange Commission.
Over-the-counter stock options are usually associated with companies that are somewhat small or for other reason do not meet the criteria set by most larger exchanges. Brokers and retailers trade with these shares through networks that are often extremely effective. Investors often find excellent offers in these networks, although sometimes there are higher risks associated with credit rating of companies trading in these networks. As with any purchase of shares, it is good to look at the general financial situation of the issuing company and the general performance of shares before purchase.