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OTC Link organizes securities into three marketplaces based, in part, on the amount and quality of available information: OTC Link is registered with the SEC as a broker-dealer and as an Alternative Trading System, and is a member of FINRA. In addition to publishing quotes, OTC Link provides, among other things, broker-dealer subscribers the ability to send and receive trade messages, allowing them to negotiate trades.
#What are micro cap stocks how to
This Guide tells you about microcap stocks, how to find information, what "red flags" to consider, and where to turn if you run into trouble. Even in the absence of fraud, microcap stocks historically have been more volatile and less liquid than the stock of larger companies.īefore you consider investing in a microcap company, arm yourself first with information. When publicly-available information is scarce, fraudsters can easily spread false information about microcap companies, making profits while creating losses for unsuspecting investors.
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Many microcap companies do not file financial reports with the SEC, so it's hard for investors to get the facts about the company's management, products, services, and finances. But accurate information about "microcap stocks" - low-priced stocks issued by the smallest of companies - may be difficult to find.
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Information is the investor's best tool when it comes to investing wisely.