Many investors are leery of OTC, or over-the-counter, stocks – and there are plenty of good reasons for that caution. OTC stocks often involve companies too small to be listed and traded on the coventional and better-known stock exchanges.
They can include so-called “penny stocks” – defined by the SEC as “a security issued by a very small company that trades at less than $5 per share.”
Companies issuing OTC stocks might also have bad credit records or be highly speculative But not all OTCs are as risky as you might think. Here's a list of some “legit” OTC's for you to consider:
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Comments
Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.