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Be sure to check out $VTNL's filings, you can get them on OTC Markets.
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$VTNL Alert for February
$VTNL Barchart Opinion - http://www.barchart.com/opinions/stocks/VTNL
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$VTNL Cheat Sheet - http://www.barchart.com/cheatsheet.php?sym=VTNL
$VTNL Visit: http://www.otcmarkets.com/stock/VTNL/company-info to see complete details
Limit Order – a limit order does have a set price and therefore may only be executed at the set price; however, a limit order may never get executed because the market may move away from the set price. Those who use limit orders risk not having a order executed.
In order to qualify for the OTCQB marketplace, SEC Reporting companies must be current in required SEC filings. During the time it is labeled Caveat Emptor, any stock that is not in OTC Pink Current Information or OTCQB will also have its quotes blocked.
The OTCQX tier includes both multinational companies seeking access to U.S. investors and domestic growth companies.[12] To be traded on this tier, companies undergo a qualitative review by OTC Markets Group.[13] Companies are not required to be registered with or reporting to the SEC, but must post financial information with OTC Markets Group.
To be quoted on the platform, companies are not required to file with the SEC, although many choose to do so.[6] A wide range of companies are quoted on OTC Markets, including firmly established foreign firms,[7] mostly through American Depositary Receipts (ADRs). In addition, many closely held, extremely small and thinly traded US companies have their primary trading on the OTC Markets platform.
Under the Securities Act of 1933, a company that offers or sells its securities must register the securities with the SEC or find an exemption from the registration requirements. The Act provides companies with a number of exemptions. For some of the exemptions, such as rules 505 and 506 of Regulation D, a company may sell its securities to what are known as "accredited investors."
If a broker-dealer decides to trade they can communicate with other broker-dealer(s) using OTC Link – OTC Markets Group’s electronic messaging and trade negotiation system – or they may contact the broker-dealer through other means of communication and negotiate the trade.
The National Quotation Bureau changed its name to Pink Sheets LLC in 2000 and subsequently to Pink OTC Markets in 2008. The company eventually changed to its current name, OTC Markets Group, in 2010.[5] Today, a network of over 160 broker-dealers price and trade a wide spectrum of securities on the OTC Markets platform.
OTC Markets Group and the FINRA OTCBB distribute their market data to broker-dealers, investment professionals, market data re-distributors, and financial websites, including OTCMarkets.com.
OTC market structure is very similar to other equity security markets. A key difference, however, is in the actual trading process, which will be explained in Part 2 – Trading.
OTC Pink is an open marketplace that has no financial standards or reporting requirements. The stock of companies in the OTC Pink tier are not required to be registered with the SEC. Companies in this category are further categorized by the level and timeliness of information they provide to investors and may have current, limited or no public disclosure.
Real-time Level 2 quotes are available for sponsored securities, and all OTCQX securities on OTCMarkets.com. Real-time Level 2 quotes and trades for all other OTC securities are available on OTC Dealer.
In addition, US companies must be ongoing operations (no shells etc.) and may not be in bankruptcy, while foreign issuers must meet the requirements of qualified Non-US exchanges.[9][14] Additional oversight of OTCQX securities is provided by requiring every issuer to be sponsored by approved third-party investment banks or law firms, called Principal American Liaison (PAL) for non-US issuers and Designated Advisors For Disclosure (DADs) for US issuers.
Current Information - Reporting companies that submit filings to regulators with powers of review and that make the filings publicly available or non-reporting companies that make current information publicly available on the OTC Disclosure and News Service pursuant to OTC Markets OTC Pink Basic Disclosure Guidelines.
FINRA members shall not impose, nor permit to be imposed, non-subscriber access or post-transaction fees against its published quotation in any OTC Equity Security that exceed or accumulate to more than: (a) $0.003 per share, if the published quotation is priced equal to or greater than $1.00; or (b) the lesser of 0.3% of the published quotation price on a per share basis or 30% of the minimum pricing increment under Rule 6434 relevant to the display of the quotation on a per share basis if the published quotation is less than $1.00.
If the order is not marketable, the broker-dealer may create or edit its existing quote on an Inter-dealer Quotation System (e.g. OTC Link) to reflect a new price or size. The quote lets all other broker-dealers know the price which they are willing to buy or sell. Broker-dealers are only required to update their quote if the price of the order is equal or superior to their existing quote.
Investors should clearly understand that trading practices for OTC securities are different from those of securities traded on exchanges. Your broker-dealer or the broker-dealer they route your order to, may not provide you with limit order display or instantaneous executions in OTC securities.
The Caveat Emptor symbol is displayed in place of the OTC marketplace identifier on all OTC Markets’ platforms and is distributed on market data feeds. The symbol is displayed wherever OTC Markets’ quote data is available. It is used by investors, broker-dealers, clearing firms and other industry participants when they make trading decisions.
The OTC market is not suitable for unsophisticated or novice investors. You should gain a thorough understanding of your rights as an investor and investigate the background of the issuing company, individual broker, and brokerage firm before you invest.
Broker-dealers cannot use their knowledge of customer orders to provide customers with inferior prices. For example, buying a security for less than a known Limit Order price and then selling the security to the customer at the Limit Order price.
To initiate quotations in any OTC Equity security or resume quotations after a four day absence or SEC suspension on either the OTC Link or OTCBB inter-dealer quotation system, a market maker must first obtain and review certain specified information regarding the issuer. The information requirements are specified in the SEC's Rule 15c2-11. The information is supplied to FINRA on Form 211. When approved by FINRA, the member may submit its quotation to OTC Link or the OTCBB, as sufficient reliable current information is available in the marketplace to support the member’s quotation.
Broker-dealers may charge an additional ‘access fee’ to broker-dealers who want to trade at their quoted price. The fee maximums are based on the tick size (> .01) or price (< .01). OTC Markets QAP (Quote Access Payment) functionality allows broker-dealer to dynamically set their fees or rebates.
Most investors maintain a "cash" account that requires payment in full for each security purchase. But if you open a "margin" account, you can buy securities by borrowing money from your broker for a portion of the purchase price. For more information about how margin accounts work, read our publication, Margin: Borrowing Money To Pay for Stocks and FINRA's Investor Alert on this subject.
“The Spread” is a term that applies to all markets and represents the difference between the highest bid price and the lowest ask price. For example if “the bid” is $10.00 and “the ask” is $11.00, then the spread is $1.00. The spread is one of the ways that broker-dealers, specifically market makers (a type of broker-dealer that provides liquidity by quoting and trading both sides of the market), make money.
There are no broker-dealers quoting this security. It is not listed, traded or quoted on any U.S. stock exchange or the OTC Markets. Trades in grey market stocks are reported by broker-dealers to their Self Regulatory Organization (SRO) and the SRO distributes the trade data to market data vendors and financial websites so investors can track price and volume. Since grey market securities are not traded or quoted on an exchange or interdealer quotation system, investor's bids and offers are not collected in a central spot so market transparency is diminished and Best Execution of orders is difficult.
All subscribers to OTC Link are broker-dealers that are members of FINRA. Subscribers are permitted to quote any OTC equity security eligible for quoting under Exchange Act Rule 15c2-11 or the applicable exemptions to Rule 15c2-11. OTC Link does not require companies whose securities are quoted on its system to meet any eligibility requirements.
The OTC market does not have this limitation. They may agree on an unusual quantity, for example. In OTC market contracts are bilateral (i.e. contract between only two parties), each party could have credit risk concerns with respect to the other party. OTC derivative market is significant in some asset classes: interest rate, foreign exchange, equities, and commodities.
Short Position Disclosure (Rule FINRA 4560) – FINRA members must report their short interest positions in OTC equity securities at mid-month and end of the month.
In addition, US companies must be ongoing operations (no shells etc.) and may not be in bankruptcy, while foreign issuers must meet the requirements of qualified Non-US exchanges.[9][14] Additional oversight of OTCQX securities is provided by requiring every issuer to be sponsored by approved third-party investment banks or law firms, called Principal American Liaison (PAL) for non-US issuers and Designated Advisors For Disclosure (DADs) for US issuers.
OTC Markets Group Inc. (“OTC Marketsâ€) identifies securities with a Caveat Emptor symbol to inform investors that, in OTC Markets’ opinion, there is reason to exercise additional care and perform thorough due diligence in making investment decisions for a particular security.
If you own stock that has been delisted from an exchange and is now quoted on OTC Link or the OTC Bulletin Board, nothing has changed with the shares themselves. You are still the beneficial owner of the securities and may trade them. You should check with your current broker-dealer to make certain that they provide services in OTC securities. If not, you will need to locate a broker-dealer that does provide services in OTC securities.
Companies create and sell securities in the market to raise capital, complete an acquisition and/or allow selling shareholders to exit their investments.
There are a wide variety of companies – spanning all major sectors and industries, with market capitalizations ranging from large cap to micro cap – quoted and traded in the OTC market.