Just what does the "HSCC OTC Pink No Information STOP sign" mean? Does it mean the companies that have a stop sign don't publish financial information, like up to date AS, OS, Float, share structure, financials? No not at all it just means they didn't pay the OTC Markets.com $4700 to prevent them from putting up a stop sign.
OTC Markets uses this to more or less bully $4200 a year from these companies. If a company sent all the current financial information to OTC Markets but didn't pay them $4200 plus $500 set up fee. (must be very difficult to cut and paste information) they would get the stop sign and all the warnings and the info would not be posted.
To the novice investor that has weak DD skills this is about as far as they look. They don't even take the time to read the terms of OTC Markets. Here they are.
OTC Disclosure & News Service
The OTC Disclosure & News Service gives companies the ability to widely distribute their financial information so that investors can effectively analyze value, risk, and opportunity. Companies use this tool to post annual and interim reports, news releases, material events and investor presentations directly onto their quote page on www.otcmarkets.com.
Company news and information is available on www.otcmarkets.com, and fundamental data is distributed by Edgar Online to financial sites and portals such as Yahoo! Finance. Additionally, companies can now also disseminate company news and information not only through the OTC Disclosure & News Service on OTCIQ.com, but also through PR Newswire’s expansive network, which includes local, national and Reg. FD compliant news portals – all at an exclusive rate.
Key Benefits
Improve Investor Engagement – 95% of the dollar volume traded on the OTC marketplace is in companies with current information available. Intelligent investors can trade with confidence when information is widely available
Promote Competitive Pricing – Disclosure is sent to broker-dealers who quote OTCQX, OTCQB and OTC Pink securities, facilitating more competitive bid/ask spreads
Qualify for a Higher Marketplace – Companies can use the OTC Disclosure and News Service to help qualify for OTCQX, or they can upgrade their OTC Pink designation to “Current” or “Limited Information”
Maintain Regulatory Compliance – Stay in compliance with SEC Rules 144(c)(2) and 10b-5 which facilitates resale of restricted securities and helps protect management from insider trading violations
Increase Distribution – Company information is published on the OTC Markets Group’s websites; fundamental data is distributed by Edgar Online to financial sites, such as Yahoo! Finance; companies can disseminate company news and information through PR Newswire’s expansive network. Click here for pricing.
Start helping your investors make smarter decisions today by subscribing to the OTC Disclosure & News Service today.
Fees
$4,200 per year with a $500 setup fee.
How to Order
Contact Issuer Services at issuers@otcmarkets.com or 212.896.4420 to order today.
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OTC Markets formerly Pinksheets.com is the last place I go for information because it is normally not very accurate, out of date. The Share structure on over 90% of the companies on that site is way off.
OTC website is good for one thing seeing how many r/s splits, remorphs, and changes of business plan. Along with that the contact information on the TA. Other than that everything on the site should be taken with a huge grain of salt.
If a company sends the same information to Yahoo they will update the finance page free of charge. Yahoo finance is the first place many people go to get a view of a company. If the info is there. There is absolutely no reason to go to OTCMarkets unless you want to know how long since the last r/s and what was the company pretending to sell in its former life.
Some people might go as far as to say they are scamming the companies out of $4700 a year to prevent the Scary Stop Sign from scaring novice bagholder investors away.
Read the fine print next time
AI
