I own some penny stocks in a portion of my account I have devoted to speculation. However, many penny stocks that trade on the US Over The Counter Market (OTC) are going to crash due to incoming September new SEC rules about “Pink No Information” securities. They basically are going to stop US brokers from allowing trades in OTC stocks that do not make the required filings with the SEC.
The implications for all of this are very simple. Many stocks trading now will stop trading. Traders in them are likely to sell ahead of the SEC deadline and crash them. The good news is that there are plenty of penny stocks that are perfectly fine and will not be impacted at all. If anything people will take money out of the bad ones and put them into the good ones. This is going to be a good cleanup for the stock market.
You can easily tell if a penny stock, whether you own it already or not, is already in compliance with the incoming SEC regulations or not. I show you how in this video. BTW – my top stock pick for this month is a penny stock in full compliance. You can find out about it from my first post on it here.
If you are not already on my free stock trading email update list then you need get on it. Once you subscribe you’ll also get my next top stock pick of the month. To join just click here.
-Mike
