How to Purchase OTC Stocks
Stocks that are not listed on a major U.S. exchange such as the Nasdaq or NYSE trade in a market that is known as "over the counter." Investors should note these stocks typically have small market values and are not subject to the same standards for financial reporting as stocks listed on big exchanges.
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Using A Traditional Broker
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Not all traditional brokers offer access to stocks that trade over-the-counter and this includes online brokers, so if you know that you want to actively trade OTC stocks, make sure your broker can accommodate this desire or shop around for a new broker.
A Speciality Broker
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Some brokers focus solely on giving investors access to stocks that trade over-the-counter. Evaluating a broker that specializes in OTC stocks would be a wise choice for investors that expect to be active in this asset class.
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Consider ETFs
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Several exchange traded funds (ETFs) focus on small- and micro-cap stocks and many of the stocks that these ETFs track are traded over-the-counter. An ETF focused on OTC stocks is a wise choice for investors who don't want the burden of stock-picking in the OTC universe.
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