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Date: 7/16/2003 Can I trade OTC bulletin boards, pink sheets, or penny stocks?
Yes.
Over-the-counter bulletin board (OTCBB), pink sheets, and penny stocks can be
bought and sold via the internet, or with a broker. OTCBB securities usually represent
shares of new or small companies which are traded by dealers via manual procedures.
Investing in OTCBB securities can be very risky, and investors may lose all or part of their investment in a relatively short period of time. Accordingly, the trading rules for OTCBB securities differ significantly from listed or NASDAQ securities. For example, it is ecommended only limit orders to buy and sell for the regular market sessions. Quotes for OTCBB securities are not guaranteed as the securities trade on a manual basis, and frequently "real-time" quote information, or even firm quotes, may not be available. Investors should also be aware that frequent symbol changes, additions, and delistings occur in the OTCBB market. Before placing an order for an OTCBB security, please take the time to carefully research the company and examine your investment objectives.
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| *The
term Direct Access refers to the clients ability to determine which Exchange,
ECN or Market Maker receives their order. The term does not mean to imply that
you can trade without a broker, as any transaction would require a relationship
with a registered Broker-Dealer. Securities offered through Online Brokerage Services
member NASD/SIPC, NFA. The
risk of loss in electronic trading can be substantial, you should therefore consider
whether such trading is suitable for you based on your individual circumstances
and financial resources. Account access, trade execution and system response may
be adversely affected by market conditions, quote delays, system performance and
other factors. Extended hours trading entails several risks including lower liquidity,
higher volatility, wider spreads, changing prices, unlinked markets, news and
announcements. Not all securities, products or services are available in all states
or countries outside the United States and nothing herein should be deemed as
an offer or solicitation of these securities, products and services in any jurisdiction
in which Online Brokerage Services is not properly licensed and registered. *IMPORTANT
INFORMATION ABOUT INVESTMENTS. NOT FDIC-INSURED. NO BANK GUARANTEE. MAY LOSE VALUE.
NOT A DEPOSIT. NOT INSURED BY ANY FEDERAL GOVERNMENT AGENCY |
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