OTC Markets Releases New Policy on Stock Promotion

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OTC Markets Releases New Policy on Stock Promotion

Yesterday, OTC Markets Group released a new stock promotion policy to improve overall market transparency for investors and better address the problem of fraudulent stock promotion.


Clarify Responsibility of Reputable Public Companies

The new policy and best practices codify a core principle of OTC Markets Group’s disclosure-based philosophy and the OTCQX and OTCQB Rules. It clarifies the responsibility of reputable public companies to make adequate current information available and provide timely disclosure of any news or information that might reasonably be expected to materially affect the market for its securities. This responsibility also requires public companies to quickly correct any false statements or materially misleading information spread by promoters so that public markets are not disrupted. These initiatives reinforce OTC Markets Group’s ongoing market surveillance programs to provide better information, create additional investor protections and ensure a fair market pricing process.


Learn more about OTC Markets’ new stock promotion policy HERE


Promotion Risk Flag

OTC Markets also announced that a new designation will be implemented to publicly identify securities that are the subject of stock promotion using a “promotion risk flag” designation on the OTC Markets Group websites, including otcmarkets.com, as well as respective market data feeds. This promotion flag is designed to alert market participants and investors of the potential risks associated with trading a security during a promotion campaign and will be introduced in the first quarter, 2018. It builds upon OTC Markets Group’s Caveat Emptor risk flag, which indicates public interest concerns including fraudulent stock promotion.


Learn more HERE.




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