NASDAQ OTCBB

There are many NASDAQ OTCBB differences that people should pay attention to. Most serious investors don’t invest in OTCBB stock. They have similarities and differences.

NASDAQ OTCBB is not alike in the fact that the OTCBB doesn’t impose the listing standards and they don’t provide automated trade executions. The OTCBB also doesn’t maintain relationships with the quoted issuer and the obligations of the market makers are not the same to be listed as an OTCBB. Other differences include that NASDAQ has minimum quantitative listing requirements while the OTCBB doesn’t. NASDAQ also charges listing fees and maintenance fees to issuers offering stock through them.

NASDAQ OTCBB similarities include they both have requirements to maintain a quotation or a listing. They provide real-time information on quotes and domestic issues and they both have a minimum form 211 or a listing process time. The difference with this is that OTCBB is 3 days turn around for the time frame and NASDAQ is 6-8 weeks.

The OTCBB is completely separate from the NASDAQ stock market and companies that are OTCBB are not involved with NASDAQ.

The OTCBB and NASDAQ both require companies to give out their financial information. Another big difference with NASDAQ and OTCBB companies is that the OTCBB companies are much smaller than those listed in the NASDAQ. This makes it harder for the brokers and investors to gather information about the companies. NASDAQ also requires that the minimum price of stock is $5.00 and if it remains below this threshold for too long then the company will be delisted from NASDAQ. OTCBB does not have a minimum price for listing a company and a starting bid. NASDAQ is a formal stock exchange, similar to the New York Stock Exchange. OTCBB is not an issuer listing service, they provide a quotation medium for subscribers and stocks are traded by a community of market makers. It is commonly confused with the NASDAQ market but they are two different animals.

The differences of NASDAQ /OTCBB are dramatic and the two different markets should not be confused. OTCBB has penny stocks and very small companies.