SEC Publishes White Paper Examining Outcomes of In
Post# of 22940
Posted On: 12/18/2016 4:03:23 PM
SEC Publishes White Paper Examining Outcomes of Investing in OTC Stocks
Examining Outcomes of Investing in OTC Stocks
December 18, 2016: Last Friday, the U.S. Securities and Exchange Commission's Division of Economic and Risk Analysis released its analysis of trading in OTC stocks. These issuers predominately consist of companies with penny stocks.
The White Paper looks at three aspects of over-the-counter (OTC) stocks: (1) the recent trends in the OTC stock market structure and size; (2) the documented properties of OTC stocks; and (3) the differences in returns based on investor and stock characteristics. It reports that 10,000 OTC stocks were quoted at the end of 2013 through 2015, which generated a total trading volume of over $200 billion per year. Not surprisingly, volume is concentrated on those issues which have no registration or reporting requirements, have little to no liquidity (assets), are manipulated through false and misleading press releases and promotion campaigns. These characteristics are likely to lead to penny stock fraud. The paper reports that on average, these stocks create huge losses for traders, rarely growing into a real company. No shock there.
1.8 million trades by over 200,000 individual investors...
Click here to read the entire article
theOTC.today | contact@theOTC.today | Market Metrics | 11870 Santa Monica Boulevard, #461 | Los Angeles, CA 90025
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Examining Outcomes of Investing in OTC Stocks
December 18, 2016: Last Friday, the U.S. Securities and Exchange Commission's Division of Economic and Risk Analysis released its analysis of trading in OTC stocks. These issuers predominately consist of companies with penny stocks.
The White Paper looks at three aspects of over-the-counter (OTC) stocks: (1) the recent trends in the OTC stock market structure and size; (2) the documented properties of OTC stocks; and (3) the differences in returns based on investor and stock characteristics. It reports that 10,000 OTC stocks were quoted at the end of 2013 through 2015, which generated a total trading volume of over $200 billion per year. Not surprisingly, volume is concentrated on those issues which have no registration or reporting requirements, have little to no liquidity (assets), are manipulated through false and misleading press releases and promotion campaigns. These characteristics are likely to lead to penny stock fraud. The paper reports that on average, these stocks create huge losses for traders, rarely growing into a real company. No shock there.
1.8 million trades by over 200,000 individual investors...
Click here to read the entire article
theOTC.today | contact@theOTC.today | Market Metrics | 11870 Santa Monica Boulevard, #461 | Los Angeles, CA 90025
Email Marketing by iContact - Try It Free!
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