Over the years, I’ve been asked a lot of questions. More than I can count. One question that keeps coming up is from traders who want to know what will happen to their OTCBB stock if it uplists 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).
This scenario is called a jumper. There is a good chance that your stock shares will gain in value because it opens your stock up to a whole new set of investors who only trade on major exchanges.
If any change in the ticker symbol takes place, your brokerage firm (i.e. ETrade, Scottrade, etc.) will contact you via your trading console and/or by regular mail.
But let’s be straight here. You are an idiot if you are buying OTCBB stocks hoping they will uplist to a major exchange.
Tom Cruise Crazy publishers will try and sell you an expensive subscription for stocks that go from the OTC to the Nasdaq. Jumpers that you can make 1,000%…3,500%, even 10,000% and more! Don’t believe it. It’s a scam.
In the hundreds of traders I’ve spoke with over the years, not one of them has told me that he made money from picking jumper stocks more than he lost.
Reality check. If the company was such a good company selling such a hot product, they never would have been listed on the OTCBB in the first place. They would have opted for an original listing on the Nasdaq in the first place. The cost for a listing on a major exchange is hardly more than a listing on the OTCBB. The only difference is the reporting requirements. The disclosure that the company must provide investors on 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!
Tags: investing, what happens to my stock when it goes from otc to nasdaq, what happens to otc stocks, what happens to stock when a company changes markets, what happens when companies get listed on the nasdaq, what happens when stock moves from otc to nasdaq