The OTCBB Market - Where Penny stocks to Watch Reside

The OTCBB stands for the Over the counter Market Bulletin Board. This is where securities trade that will be not part of NASDAQ or any national securities exchange. The OTCBB is a regulated quotation service to provide real time quotes, sales prices and volume information for equities. Many hot penny stock lists to watch reside the following.

In 1990, the OTC Market was started as a part of a larger market reform process and provide more transparency with regard to equity markets. As part of the Penny Stock Reform Take action, the Securities and Exchange Commission wanted a new electronic system for estimates and trade transactions. This product provided both large and small investors real-time information, how many trades were taking place in a stock, the direction of the trades [stock either going up or down], how many buyers versus sellers, and also the volume.

Take a Look at Penny Stocks to Watch

In 1997, along came the OTCBB as a permanent operation which next required companies to statement and file quarterly together with yearly financials. Up until this aspect, companies were not easily researched plus it was difficult to verify information, especially genuine financial records. Investors were left to trust press releases and information create by the company to make "heads or tails" of an company's condition. This concluded in much speculation and many investors stayed faraway from many great companies. Remember, many companies like Games R Us and Ms traded for a $1 at once.

Next, the Securities together with Exchange Commission instituted that OTCBB Eligibility Rule. This simply meant that will companies already trading on The Over the counter Market had to account financials. If a company then do not report financials within a 30-day period, it would be delisted and removed from the OTC and moved on the Pink Sheets. That's another discussion, as some of the best penny stocks available can be found there, if you do your due diligence.

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