Can I trade OTC bulletin boards, pink sheets or penny stocks?
Yes. Over-the-counter bulletin board (OTCBB), pink sheets and penny stocks (hereafter OTCBB) can be bought and sold via the Internet, IVR phone system or with a broker. OTCBB securities usually represent shares of new or small companies which are traded by dealers via manual procedures. Investing in OTCBB securities can be very risky, and investors may lose all or part of their investment in a relatively short period of time. Accordingly, the trading rules for OTCBB securities differ significantly from listed or NASDAQ securities. For example, only limit orders to buy and limit or market orders to sell will be accepted for the regular market sessions. Quotes for OTCBB securities may not be accurate as the securities may trade on a manual basis, and frequently “real-time” quote information, or even firm quotes, may not be available. Investors should also be aware that frequent symbol changes, additions and delistings occur in the OTCBB market. Before placing an order for an OTCBB securi
