The OTC Bulletin Board or OTCBB is an interdealer electronic quotation system in the United States that displays real-time quotes, last-sale prices, and volume information for many over-the-counter (OTC) equity securities that are not listed on the NASDAQ stock exchange or a national securities exchange. Broker-dealers who subscribe to the system can use the OTCBB to look up prices or enter quotes for OTC securities. According to the SEC, "fraudsters often claim or imply that an OTCBB company is a Nasdaq company to mislead investors into thinking that the company is bigger than it is."^[1]

FINRA runs and provides regulatory services to the OTCBB. The OTCBB formerly collected 100% of quotes, but that number has declined with the rise of its competitor Pink OTC Markets. In September 2009, FINRA announced that it would be selling the OTCBB.^[2] Pink OTC Markets was the leading contender for purchasing the OTCBB, but terms could not be reached between itself and FINRA.^[3] In September 2010, FINRA announced that it had reached terms for the sale of the OTCBB with well known investment bank Rodman & Renshaw. Along with the sale of the OTCBB and, in an effort to provide uniform regulation to all OTC issues and, subsequently, transparency to the OTC market, FINRA has proposed a "quotation consolidation system." Under the quotation consolidation system, FIRNA would require dealers to report all of their quotes to the quotation consolidation system, regardless of the market upon which they were originally quoted. This would enable FINRA to have access to all quotes in OTC issues and regulate the OTC market in its entirety. ^[4] Pink OTC argues this is anti-competitive and an abuse of FINRA's authority.^[3]

There are over 8,000 public companies quoted on the OTCBB^[5] and Companies quoted on the OTCBB must fully report (i.e. current with all required SEC filings) but have no market capitalization, minimum share price, corporate governance or other requirements to be quoted. Companies which have been "de-listed" from stock exchanges for falling below minimum capitalization, minimum share price or other requirements often end up being quoted on the OTCBB.

Stock of non-reporting companies (those without current SEC filings) may be quoted in the Pink Sheets. Most OTCBB companies are dually quoted, meaning they are quoted on both the OTCBB and the Pink Sheets.

Stocks traded in OTC markets such as the OTCBB or Pink Sheets are usually thinly traded microcap or penny stocks, and both retail and institutional investors generally avoid them, because of fears that share prices are easily manipulated and there exists a potential for fraud. The SEC issues stern warnings to investors to beware of common fraud and manipulation schemes. As such, most companies choose to list on more established exchanges such as the AMEX, NYSE, or NASDAQ once eligible. FINRA believes that the proposed "quotation consolidation system" would enhance transparency, thereby decreasing the potential for price manipulation or fraud.

See also[link]

• Microcap stock fraud

References[link]

External links[link]

• OTC Bulletin Board
• Microcap Stock: A Guide for Investors
• [2]

Douglas Lee Baker (born April 3, 1961 in Fullerton, California) is a former infielder in Major League Baseball player who played with the Detroit Tigers from 1984-1987 and the Minnesota Twins from 1988-1990. Baker played in 136 Major League games and had a .207 batting average with 51 hits, 38 runs, 22 RBIs, and 11 doubles.

External links[link]

Baseball portal

• Career statistics and player information from Baseball-Reference, or Fangraphs, or The Baseball Cube

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