Stockbroker Law - Friday, November 17, 2017
SEC Issues Microcap Fraud Alert for Low-Priced Stocks
In a recent Release, the SEC warned investors about fraudulent schemes involving Over-The-Counter (OTC) stocks.  This warning also included stocks listed on the OTC Bulletin Board (OTSBB) and the OTC Markets Group, Inc. (f/k/a Pink Sheets).  Notably, companies quoted on the OTCBB/Pink Sheets and the OTC Markets are not subject to the more stringent listing and minimal financial standards for larger more established companies.  


What very few investors realize is that there are over 10,000 companies whose shares trade on the OTC Markets Inter-Dealer Quotation systems – the OTC Bulletin Board and the OTC Markets Group, Inc.  These companies are oftentimes thinly capitalized, their shares are difficult to assess and are oftentimes difficult to sell due to their illiquidity.


We offer a free initial consultation to investors who have sustained losses in the OTCBB market due to improper sales tactics or misrepresentation.  For a free initial consultation, contact the Law Offices of Timothy J. O’Connor at (518) 426-7700.

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