The OTCBB pink sheet debate is well know to any person interested in trading over the counter stocks. Some stockholders place great trust in the structured environment of the OTCBB system. Others insists that the variety offered by the pink sheet system is really worth the added risk. Which side you take in the debate will rely largely on your investing style. How much control do you need over your investment decisions? Is the potential for growth more critical than risk management? These are some of the questions you need to ask before you jump into the OTCBB pink sheet debate.
OTCBB Pink Sheet: Which Is Better?
So as to understand the difference between OTCBB pink sheet , you've first got to understand how each system functions. The OTCBB listing and trading program is owned by NASDAQ. It is usually thought to be the most main line of the 2 systems. It lists over the counter stocks that do not meet NASDAQ's listing wants, nevertheless it does impose a few rules of its own. For one thing, all companies listed must be current with their SEC filings. This regulation makes it simpler for stockholders to investigate OTCBB companies before they start purchasing stocks. It also provides assurance to speculators who the stocks belong to legitimized corporations.
In contrast to the OTCBB, the pink sheets enforce few laws. They list all over the counter stocks that don't meet the requirements of the regular market, including those listed with the OTCBB. Firms noted on the pink sheets , however , need not be current with the SEC. This implies that while the pink sheets list a larger number of stocks, lots of the stocks are tough to research and do not boast the security of SEC certification.
In the end, it is up to each financier to pick which system best fits his or her style. If you'd like access to the greatest spread of stocks and you do not mind taking 1 or 2 risks, the pink sheets are the way to go. If you would rather sacrifice variety for the sake of security, the OTCBB should be your system. Whichever system you choose , however , there is no doubt the OTCBB pink sheet debate will rage on for several years to come .
OTCBB Pink Sheet: Which Is Better?
So as to understand the difference between OTCBB pink sheet , you've first got to understand how each system functions. The OTCBB listing and trading program is owned by NASDAQ. It is usually thought to be the most main line of the 2 systems. It lists over the counter stocks that do not meet NASDAQ's listing wants, nevertheless it does impose a few rules of its own. For one thing, all companies listed must be current with their SEC filings. This regulation makes it simpler for stockholders to investigate OTCBB companies before they start purchasing stocks. It also provides assurance to speculators who the stocks belong to legitimized corporations.
In contrast to the OTCBB, the pink sheets enforce few laws. They list all over the counter stocks that don't meet the requirements of the regular market, including those listed with the OTCBB. Firms noted on the pink sheets , however , need not be current with the SEC. This implies that while the pink sheets list a larger number of stocks, lots of the stocks are tough to research and do not boast the security of SEC certification.
In the end, it is up to each financier to pick which system best fits his or her style. If you'd like access to the greatest spread of stocks and you do not mind taking 1 or 2 risks, the pink sheets are the way to go. If you would rather sacrifice variety for the sake of security, the OTCBB should be your system. Whichever system you choose , however , there is no doubt the OTCBB pink sheet debate will rage on for several years to come .
About the Author:
George Friedman writes about current stock market news on his penny stock internet site. His readers can depend on a daily update to make the best moves with their investments.
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