The difference between what a buyer is willing to pay and what a seller is asking can be vast, instantly putting a trade at a paper loss upon execution.
Many OTC companies are not required to file financial reports with the SEC, making them targets for fraud and "pump-and-dump" schemes. buying otc stocks on etrade
OTC stocks are categorized into tiers based on the level of financial disclosure the company provides. OTCQX: The highest tier requiring audited financials. OTCQB: The venture tier for developing companies. The difference between what a buyer is willing