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Re: alstocks post# 33685

Sunday, 04/14/2024 7:20:54 PM

Sunday, April 14, 2024 7:20:54 PM

Post# of 34827
I'd like to add a small correction to your comment. The challenge with the OTC arises when it becomes too organized and too many individuals begin profiting excessively. This is why the SEC implemented Rule 15c2-11. The OTC started becoming a lucrative opportunity for small investors. For instance, buying a million shares of PLPL at $0.0005 and selling them at $0.006 results in a 1100% increase. I started trading in the OTC, and as long as money was being lost in these high-risk stocks, the SEC didn't intervene. However, the issue arose when individuals started making millions in the OTC faster than in other exchanges.

In a new report from Wintermute, the market maker and liquidity provider, said that its over-the-counter (OTC) volume was up 400% throughout the year as volumes moved off-exchanges.

Essentially, the OTC drew the SEC's attention. It's akin to a casino: if a particular table sees too many winners, does the casino allow it to continue unchanged?