What is the stock board?

The stock market offers countless opportunities for investors and companies issuing capital for the public. These options include a place where a list of securities for trading. The issuing company does not have to be qualified to introduce shares on the formal stock exchange where traditional regulation and recognition can be achieved. Instead, the issuers could introduce shares in the over -the -counter market, where a new problem becomes shares for investors in the store. The regulation is less ubiquitous, the price guarantee is more opaque and fraud has a better chance of becoming an over -the -counter market.

Each investor would benefit from choosing further growth that provides future profits from a company that continues to produce more profits. Shares of the notice board can offer the perception of a company that will become another leader in the field. Investors are often attracted by a prospect of such an investment, as the price for the stock stock can be very cheap. However, they are serious with these investments serious risks associated with these investmentsIcemi and market experts often propose that investors be wary of these securities.

Chief between the risks associated with shares on the board is the possibility of fraud. The lighter regulation itself facilitates ongoing investment fraud. The shares that are on the main stock market, such as the New York Stock Exchange, Euronext or NASDAQ stock market in the US, must comply with the specific list requirements to sell shares on these platforms. There are no same standards on the over -the -counter market. A company that once met the requirements for extracting the main stock exchange, but later does not meet the same standards for a certain period of time, is usually excluded from the stock exchange platform and drops to the status of the bulletin to trade on the partition market.

Since the price of the Stock message board tends to be cheaper compared to the security that indicates the main exchange, this option is greater for fraud. For example, the participants of the NeetiThe market markets could buy high -quantity wall boards to illustrate the high demand for this security to other investors. Subsequently, other investors can invest in shares, which increases the price on the basis of the assumption that there is high demand and the price will continue to rise. Meanwhile, the fraudulent individual is able to sell a high amount of cheap shares and profit from the transaction and to leave other investors with little use.