OTC Stock Picks

Welcome to OTCStockPicks.org. Offering daily stock picks for the active stock market investor. Increase your chances of picking the best stock by using our top rated stock picks.

OTC stocks are stocks which are traded on the Over The Counter Bulletin Board market which is often refered to as OTCBB. The two major over the counter stock trading markets are Over the Counter Bulletin Board (OTCBB) and the Pink Sheets securities. The OTC Bulletin Board, is an independently operated, regulated electronic quotation system that displays real-time quotes, last sale prices, and volume information for OTC stocks.  Similar to the Pink Sheets, OTC stocks are not actually listed or traded within a stock exchange. OTC stocks are not traded on the major exchanges such as the Nasdaq, NYSE, and the AMEX.

Stocks traded on the Over The Counter Bulletin Board are smaller companies which are unable to make the listing requirements of the major stock exchanges and could possible be a company that has been delisted from the major stock markets. The stocks from these companies are commonly known as penny stocks, pink sheets and grey sheets stocks. Since there have been technological advancements in trading software, stock traders are now able to trade OTC or OTCBB stocks online without any problems. Today, the number of companies within the OTC market is growing as companies are making their way up to the larger stock exchanges. So therefore it’s a good time to be adding OTC stocks to your trading portfolio.

The OTC market began in 1990 on a trial basis as part of a wide range of market reforms that were being implemented to make the OTC equity markets more transparent to the average investor. The Penny Stock Reform Act of 1990 instituted an electronic system for the OTC market. The purpose of the new electronic system was to see the difference between the spread of a stock, the price of a stock, and the number of shares being traded. Starting in 1993 companies that traded on the OTCBB market were required to report stock trades within 90 seconds of a transaction. Now anyone can see the number of shares being traded in a stock, if the stock price is inceasing or decreasing, if traders are buying or seeling the stock, and the number of shares being traded in real time.

The full time operation of the OTC Bulletin Board was approved in 1997 by the Securities and Exchange Commission. Today any company that trades on the OTCBB has to report their yearly financials to the Securities and Exchange Commission, banking regulators, and also insurance regulators if they want to remain eligibile to trade on the OTCBB. If a company does not report their financials to the SEC and the regulators, the company’s ticker symbol will receive an extra “e”. This additional “e” at the end of the ticker symbol lets investors know that the company has not reported its financials to SEC or to the regulators. The company has 30 days to report their financials to the SEC and the regulators. If the company misses the 30 day grace period the company will then be delisted from the OTC and moved to the pink sheets. This additional regulation implemented by the Securities and Exchange Commission has benefitted the average investor. Now the average investor is able to research up to date company financial statements before purchasing the stock of a paticular company.

If you are interested in other OTC stock picking resources you may want to consider checking out the following resources for additional stock picking information: stock market, stock market investing, stock picking strategy, fundamental analysis of stocks, technical analysis of stocks, stock patterns, stock charts, and when to buy and sell stocks.

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