InvestorsHub Logo
Followers 22
Posts 2924
Boards Moderated 0
Alias Born 10/05/2009

Re: Patrick Bateman post# 15681

Thursday, 12/18/2014 9:38:31 PM

Thursday, December 18, 2014 9:38:31 PM

Post# of 114702
In regards to pink sheet and over-the-counter (OTC) listed securities, short selling is allowed. An OTC security is one that is not traded on a formal exchange such as the New York Stock Exchange or the American Stock Exchange.

OTC securities are often quoted on the OTC Bulletin Board (OTCBB). Pink sheet securities are very similar to OTC securities in that they are not listed on exchanges, but are quoted on a daily publication issued by the National Quotation Bureau.

Although short selling is allowed on these securities, it is not without its problems. Short selling on OTC is extremely risky because these securities are often very thinly traded, which makes them very illiquid. This illiquidity can prove hazardous if an investor needs to cover an increasingly unprofitable short position. If the volume is very low, covering the position may become a very unlikely prospect.

I believe you're the one who has no idea what he's in for...you're the one susceptible to unlimited loss