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Captain and Diet

02/05/15 2:30 PM

#131657 RE: Moneybgs #131656

Unfortunately, the reality of the situation is that if you're investing longer term in OTC stocks, you're playing a game in which the odds are massively stacked against you.

Here is a study you might like to review:
http://papers.ssrn.com/sol3/papers.cfm?abstract_id=1733225

Here are a few of the major highlights you'll find within:

The mean return for native OTC stocks over one year is -33.82%
The median return for native OTC stocks over one year is -53.9%
75% of native OTC stocks declined by 13.97% or more in one year

(A native OTC stock is one that has never traded on a major exchange.)

If you read the entire study and you'll see no matter how you break it down, the vast majority of OTC stocks fail in the long run.