Golden Jackass Tobacco Shop

[JimWillieCB]

OTC is OverTheCounter, and can be highly illiquid
meaning in panicky times, not many buyers out there
so prices tank quickly with devastating effects

what is the PussBag doing over here???
hello, Klappy KlapTrap von Trapp, son of GonorrheaMan

imagine you own a Nazdaq dog stock with some real bad things happening one day
suddenly, no buyers, and the price drops 57%
that is a consequence of OTC markets
grossly insufficient number of buyers

as opposed to NYSE, which is highly liquid
that is why you are seeing Dow and S&P stocks drop harder now than the Naz stocks
since NYSE is more liquid, mutual funds are selling those stocks
because they need to raise gargantuan amounts of money for redemptions in mutual funds

OTC is notoriously slow in money flow during bad times
the effect on price is often devastating

JPMorgan will have trouble unloading OTC-type derivative contracts
esp the strange contracts called EXOTICS
they are multi-product contracts interlinked with trip wires

I hope this helps
/ jim