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Hi Fools,

I tried posting this elsewhere and was referred to this board.

I'm curious about investing in OTC BB companies. There is one in particular that I have passing interest in, and that led me to this search for more information (I like to look before I leap).

So what special things do I need to know about when investing in OTC BB companies? About all I know right now is the companies are small, the news can be hard to come by, and I have to use a limit order to purchase. Any further information, or link to a good source of such information, would be greatly appreciated. For instance, what special difficulties might I face on the selling end?

Thanks a bunch.

Regards,

squarepegs
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No. of Recommendations: 3
squarepegs,

Here's an article from Investopedia.com regarding OTC stocks:

http://www.investopedia.com/terms/o/otc.asp

Here are some additional links to sites that discuss OTC stocks. Takes some time to look through them. You'll find some interesting (and hair-raising) articles:

OTC & Penny Stock Basics
http://www.allstocks.com/copia/html/the_basics_of_otcbb.html

A Guide for Beginning Investors of Penny Stocks
http://tinyurl.com/5c2wf

Official Nasdaq OTC BB Site
http://www.otcbb.com/

A Brief Fool Article on OTC Stocks
http://www.fool.com/foolu/askfoolu/2002/askfoolu020712.htm

I think that should keep you busy for awhile. As I'm sure you've heard already, use extreme caution when investing in such issues as they are ripe for fraud and manipulation. Good luck!

Rich
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Philip Fisher wrote about Over the Counter stokcs in his book Common Stocks and Uncommon Profits. One of his don'ts was Don't igonore a stock just because it's traded "over the counter"
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Thanks, Rich!

I'll check out those links. I will be very cautious! I'm curious, but I'm not looking to invest that way any time soon. I have the itch to keep learning more about investing, and for whatever reason I think my subconscious is seeking out more fringe topics to help me avoid tackling the nuts and bolts of valuation! I can tell I'm getting nearer the point when I will delve into that subject, though.

Anyway, time to go check those links!

Thanks,

squarepegs
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Good advice! There are exceptions to nearly every rule.
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