Fannie Mae-No Politics (FNMA)

[along4zride]

Liquidity could become a problem. Many investor steer clear of OTC stocks entirely meaning if you got some shares to sell you might not be able to find (FNMA) anyone to buy them. OTC stocks face minimal standards. OTC stocks do not have to maintain a minimal share price. The OTC market has many trouble or insolvent companies.OTC stocks are substantially less liquid than stocks that trade on a major exchange. Suppose you bought an OTC company for two dollars a share. Then you see the stock rise to investors three dollars a share. Then you want to sell to cash in on your 50% profit however with low liquidity OTC stocks you might put in a order to sell and discover no one is offering three dollars anymore. The stock might drop and wipe out your gain entirely. It could be even worse when you are trying to cut your losses but you are unable to find a buyer.