OTCBB Penny Stocks - A Small Investment With Big Potential

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What Are OTCBB Penny Stocks?

OTCBB penny stocks are publicly traded companies that trade their common stock on a stock exchange called the Over The Counter Bulletin Board Exchange. Although stocks trading on the OTCBB exchange are primarily priced below $1, there are stocks that are trading above $10 or $15 dollars on this exchange. Most companies on the OTCBB are small companies that are seeking to be publicly traded with hopes of one day trading on the larger exchanges such as the NASDAQ or the NYSE.

Why The OTCBB And Not The Larger Exchanges? 

Not all private companies seeking to become publicly traded go to the OTCBB. The larger exchanges like the NASDAQ and NYSE have strict guidelines that must be met before a company is allowed to be traded on these exchanges. Many companies cannot meet these requirements and choose to trade on the OTCBB until such time they are able to meet these requirements.

OTCBB Penny Stocks And Filing Requirements 

One requirement that a private company must meet before being accepted on the OTCBB is transparency. The Over The Counter Bulletin Board requires that all companies trading on the exchange file quarterly reports with the Securities Exchange Commission that allows potential investors to see everything there is to know about the company. These reports will include profit and loss as well as liabilities, income statements, how much stock is issued and outstanding both common and preferred stock. If there are any warrants or options that may be exercisable in the future. Financing agreements and even how much stock is held by officers and employees of the company.

OTCBB Penny Stocks And Pink Sheet Stocks 

As mentioned above, OTCBB penny stocks are required by both the OTCBB and the Security Exchange Commission to be transparent and file quarterly paperwork to outline all relevant and ongoing concerns about the company. However, there is a penny stock exchange that does not require filings like the OTCBB: The Pink Sheets Stock Exchange. The Pink Sheets stock exchange is becoming more regulated since the SEC has begun cracking down on the exchange since it has been so susceptible to fraudulent activities. More and more brokers, both online and traditional are disallowing the buying and selling of pink sheets penny stocks. Pink sheet stock are best avoided by people that have very little experience in the equities markets since they are highly speculative in nature and the potential for loss is greater than on the other more reputable exchanges.

OTCBB Penny Stocks Can Be Profitable

Winning OTCBB penny stocks can increase in value by 1000% or more turning pennies into dollars.

Learn more about OTCBB Penny Stocks and how to trade them by visiting 1000 Penny Stocks.

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Penny Stock trading can be tough and cost you plenty if you don't know what you are doing.

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