![]() When a stock uplists to the Nasdaq or NYSE, they can trade it. Second, institutional investors and hedge funds typically don’t trade OTC stocks because there’s not enough liquidity. So if an OTC penny stock is uplisting, it can give a company some legitimacy. There are a few reasons this can be good news…įirst, the larger stock exchanges have more stringent requirements for companies to list. If a stock is listed on the OTC markets and has news that it’s uplisting to the Nasdaq, it usually creates some trader interest. What Happens When a Penny Stock Goes to the Nasdaq? ![]() And I don’t have to compete against hedge fund traders and algorithms. I love them because they fit my patterns best. These are the most hated of all penny stocks … but they’re my favorite. The OTC markets are where OTC stocks and pink sheets trade. If you’re looking for “true” penny stocks - stocks that trade under $1 - you’ll have to look at the OTC markets. They may put out press releases about products or contracts, paid promotions, and maybe even do a reverse stock split to get the price up. This is where you can see some creative pumps from companies. Then the company will have a certain amount of time to get its stock price over $1 and remain listed. The exchange will send the company a letter. You can find Nasdaq penny stocks under $1 … but they won’t stay there for long. One of those requirements is that its stock trades for over $1 per share. The Nasdaq has rules and criteria that companies must meet before they can list on the exchange. Generally, a penny stock is a stock that trades for under $5 per share.
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