A question that I'm asked over and over again by new traders is what will happen to their OTCBB stock should it move from the OTCBB to a major exchange like the NASDAQ.
In most cases, there's nothing you need to do on your part. Your existing stock shares will be converted into the new shares traded under the new ticker symbol on the major exchange (i.e. Nasdaq).
Investors call this a jumper stock. The odds are that your stock will increase in value once it starts trading on a major exchange because it's open to a whole new pool of investors.
If there is a change in the ticker symbol, the company will contact you about it by standard mail or through a brokerage firm like Scottrade.
But let me be clear about something. You are stupid if you think you can pick jumpers and make money at doing this.
Con-vest publishing companies are more than happy to sell you a subscription to their OTC to Nasdaq stocks. Don't be a sucker.
In the thousands of traders I've known over the years, not one of them made money at 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.
That's the anti-moron truth. The main reason for a company to list on the OTC and not the NASDAQ in the first place is that they do not want to meet the stricter reporting requirements of a major exchange. They do not want investors looking at their financial statements. They do not want investors to know what is really going on.
While not as bad as the pink sheets, the OTCBB exchange is filled with fraudulent companies who wouldn't think twice about posting false PRs and scamming you out of your money. Investing in OTCBB stocks is a fools game. Over the long run, you will go broke like everyone else who has tried. I should know. I speak from personal trading experience.
Here's something to think about. The main reason people gamble in the OTCBB market is to get really cheap stocks. Now that we are at a market bottom, many good companies listed on major exchanges are at very low OTCBB like prices!
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