|
What
Investors Should Know
·
The OTCBB is a quotation medium for subscribing members, not an
issuer listing service, and should not be confused with the Nasdaq Stock
Market".
·
There are no minimum quantitative standards which must be met by
an issuer for its securities to be quoted on the OTCBB; however, the new
Eligibility Rule limits quotations on the OTCBB to the securities
of issuers that are current in their reports filed with the SEC or other
regulatory authority.
·
Issuers do not have any filing or reporting requirements with The
Nasdaq Stock Market, Inc., or the NASD Market Makers will be required to
provide the periodic financial reports filed by OTCBB issuers with the
SEC or other regulatory authorities pursuant to the Eligibility Rule.
·
Nasdaq has no business relationship with the issuers of
securities Quoted on the OTCBB.
·
Investors must contact a broker/dealer to trade OTCBB securities.
Investors do not have direct access to the OTCBB service.
The Securities and Exchange Commission's (SEC's) Order Handling
Rules which apply to Nasdaq-listed securities do not apply to OTCBB
securities.
Back to top
Contacting
an OTCBB Issuer
OTCBB issuers are not required to maintain
current address or contact information with the Nasdaq Stock Market-
Inc. or the NASD; however, this information is available for many OTCBB
issuers. The Stock Summaries, available on-line, contains the
trading symbol, name, and annual summary trading statistics for every
security quoted on the OTCBB as of December 31st
of the year you select. The summary also includes address, phone
number, and company contact information when it is available.
Obtaining
Financial Information on an OTCBB Company
Quarterly and Annual financial information, as
well as other company information is filed with the SEC by any OTCBB
issuer whose securities began quotation on the OTCBB after January 4,
1999. Filings made with the SEC pursuant to Sections 13 or 15(d) of the
Securities Exchange Act are available to the public through EDGAR,
the SEC's on-line database of company filings. Not all OTCBB issuers are
currently subject to these reporting requirements, however. For a
detailed explanation of registration and reporting requirements and the
exemptions available from those requirements, please see the SEC's Small Business Question
and Answer.
By July 2000, all OTCBB issuers will be subject
to these reporting requirements. For more information on this topic,
please check the Eligibility
Rule section of OTCBB News.
Back to top
Investor
Protection
It is important to note that the NASD has no
regulatory, authority over OTC Bulletin Board issuers. The NASD's
responsibilities include establishing rules governing its broker/dealer
members' business conduct; setting qualification
standards for securities industry professionals,
examining members for their financial and operational condition as well
as their compliance with
appropriate rules and regulations, investigating
alleged violations of securities laws, disciplining violators of
applicable rules and regulations; and responding to inquiries and
complaints from investors and members.
Due to the high level of risk involved in
investing in Penny Stocks, the SEC created Rule 15g-2, which makes it
unlawful for a broker or dealer to effect a transaction in any penny
stock for or with the account of a customer unless, prior to effecting
such transaction, the broker or dealer has furnished to the customer a
document containing the information set forth in Schedule 15G, Rule
15g-100, and has obtained from the customer a manually signed and dated
written acknowledgement of receipt of the document." (SEC Rule
15g2(a), Risk Disclosure Document relating to the Penny Stock
Market).
If you believe that you have been defrauded by
an OTC Bulletin Board issuer, you may file a complaint with your State
Securities Regulator or contact the SEC's Office of Investor Education
and Assistance.
If you believe that you have been defrauded by a
broker, securities firm, investment advisor, or other securities
professional, you may choose to file a customer complaint or a
regulatory tip with NASD Regulation.
We encourage you to ensure that you have a
thorough understanding of the rights that you have as an investor and to
investigate the background of the individual broker and brokerage firm
before you invest. Please visit the links below for more information on
how to protect yourself or to obtain background information on your
broker or brokerage firm.
·
About Your Broker Information about the NASD Regulation
Public Disclosure Program, which allows investors to request a report of
all disclosable information regarding an individual broker or securities
form, including instructions on requesting a report (either online, by
phone, by fax, or by mail) and an explanation of the types of
information that are disclosable.
·
How to Avoid Problems Information on ways to prevent
potential problems and steps to take to resolve a dispute with a broker,
securities firm, investment advisor, or other securities professional.
·
Invest Wisely Information on selecting a broker,
understanding a new account agreement, several factors to consider
before making an investment decision, red flags to watch out for, and
where to turn if you encounter a problem.
·
SEC Rule 15-2-9 This rule established several sales
practice requirements for broker dealers transacting in 11 penny
stocks".
·
What Every Investor Should Know General 'information
provided by the SEC Office of Public Affairs, Policy Evaluation and
Research.
Back to top
Copyright
The design and information contained in this
site arc owned by The Nasdaq Stock Market, Inc. (Nasdaq®) or one of its
affiliates. Except as other sections of this web site may specifically
allow by agreement, the information may only be contained in a single
temporary copy in a single computer's memory and a single permanent copy
to be used by user, the information may not otherwise be used (not
copied. performed, distributed, rented, sublicensed, altered, stored for
subsequent use, or otherwise used in whole or in part, in any manner)
without Nasdaq's prior written consent except to the extent that such
use constitutes "fair use" under the "Copyright Act"
of 1976 (17 U. S.C. Section 107), as amended. In addition, the
information may not be taken out of context or presented in an unfair,
misleading or discriminating manner. All copies must bear this
permission notice and the following copyright citation on the first
page: "Copyright® 1998, The Nasdaq Stock Market, Inc. All rights
reserved" Except as set forth herein, any other use of the
information contained in this site requires the prior written consent of
Nasdaq and may require a fee.
Back to top
Nothing herein is to be construed as a
solicitation or any transaction The information presented has been
obtained from sources considered to be reliable, but it is not purported
to be complete or without error. Freedom Investments, Inc, and
Fahnestock & Co. Inc and or, do, officers mid directors, and, or
members of their families, may at times have positions in any securities
mentioned. All commissions and fees are subject to change with notice. |
