Category Archives: Capital Markets

Overview: Short Selling MicroCap Stocks On The OTC Markets

This week, Cromwell Coulson (CEO of OTC Markets Group) shared a post on the OTC Markets Blog about “Understanding Short Sale Activity.” Short selling is simply the sale of a security that the seller has borrowed. Short selling is a hot topic for microcap investors, traders, and management teams. MicroCap short selling is often credited for volume and price changes

Read more

Is The End Of The Penny Stock Market Imminent?

In September, Bank of America banned trades of all microcaps with stock prices under $5. For some, this signaled the end of the penny stock market and prompted Richard Levick to share an article on Frobes.com titled “The End Of The Penny Stock Market Could Be Imminent.” According to Levick, “If enough other financial institutions follow suit, the penny stock

Read more

OTC Markets Wants To Be The Exchange For Entrepreneurs

In a recent Bloomberg article about cannabis-related securities, Jason Paltrowitz explained that OTC Markets wants to be the market for entrepreneurs. Paltrowitz explained how innovative companies, like those in the cannabis space, choose OTC Markets over national exchanges because National exchanges are more restrictive, more expensive, and less beneficial for small issuers. OTC Markets has seen many international cannabis companies list on

Read more

Expert Analysis: Class of October and September 2018 OTC Graduates

By: Joseph M. Lucosky, Managing Partner Lucosky Brookman LLP While the month of September 2018 saw four companies migrate from the OTCQX, OTCQB and OTC Pink onto national securities exchanges, October 2018 was a slower month for uplists with only one company migrating from the OTCQX to the NYSE. In September of 2018, two of those companies were small-cap companies

Read more

OTC Markets Announces Q3 2018 Index Performance and Rebalancing

This week, OTC Markets Group announced the third quarter 2018 performance and quarterly rebalancing of the OTCQX® and OTCQB® indexes, including the OTCQX Canada Index and the OTCQX Dividend Index. All the OTC Indexes except the OTCQX U.S. Index ended Q3 higher. Two OTC Indexes outperformed the others. The OTCQX Canada Index (.OTCQXCAN), which tracks Canadian OTCQX companies, was up

Read more

SEC Provides Temporary Relief for Issuers Using Reg CF & Reg A+ Impacted by Hurricane Michael

According to CrowdFundInsider.com, the SEC has issued temporary rules for companies impacted by Hurricane Michael that issued securities under Regulation Crowdfunding and Regulation A. The “Interim final temporary rule” issued by the SEC on October 16th, provides that an issuer subject to the reporting requirements of either Regulation Crowdfunding or Regulation A is exempt from any requirement to file specified reports or

Read more

Study Finds Going Public On The OTC First Can Avoid Underpricing and Stock Volatility

A recent revised study published by the Journal of Financial Intermediation looks at the impact a “two-stage IPO” can have a newly public company’s price and stock volatility. The two-stage IPO is where a firm first gets quoted on the over-the-counter (OTC) stock market, and then upgrades to a national exchange where it first issues public equity. Firms completing a

Read more

OTC Markets Publishes Lists of September Compliance Downgrades & Caveat Emptor Designations

Last week, OTC Markets Group published the lists of downgrades from its OTCQX® and OTCQB® markets and Caveat Emptor Designations for the month of September. This list is part of OTC Markets’ initiative to disseminate, on a recurring monthly basis, a list of downgrades from its respective OTCQX and OTCQB markets as well as a separate list of Caveat Emptor Designations that have occurred

Read more

Bank of America Bans Trades of All MicroCaps With Shares Under $5

According to CNBC, Bank of America’s Merrill Lynch brokerage recently told clients it was changing its trading policy regarding penny stocks. CNBC’s sources say Merrill Lynch banned purchases of ‘penny stocks’ in late July, and added restrictions to sales in September. As of September 30th,  stocks priced under $5 per share from companies with a market capitalization under $300 million will be

Read more
« Older Entries