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Med
Hi Jim,
General questions regarding stocks under OTC compared to other standard one TSX,nasdaq,etc
1- what's the definition of an OTC stock
2- what are the risks investing in such stock Markets
3- From taxation point of view if any ..?
Thx
Generally speaking, OTC or over-the-counter stocks are regarded as riskier than exchange-traded stocks since they tend to be smaller and less liquid. For that reason, their share prices can move quickly one way or the other with little notice. If you trade them, be sure to use limit orders since the spread between the bid and ask prices can sometimes be substantial. I’m not aware of any tax differences on how gains or losses are treated on them. You can learn more about them here: https://www.otcmarkets.com/home.
Stock Talk
Med
Hi Jim,
General questions regarding stocks under OTC compared to other standard one TSX,nasdaq,etc
1- what's the definition of an OTC stock
2- what are the risks investing in such stock Markets
3- From taxation point of view if any ..?
Thx
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Jim Pearce
Generally speaking, OTC or over-the-counter stocks are regarded as riskier than exchange-traded stocks since they tend to be smaller and less liquid. For that reason, their share prices can move quickly one way or the other with little notice. If you trade them, be sure to use limit orders since the spread between the bid and ask prices can sometimes be substantial. I’m not aware of any tax differences on how gains or losses are treated on them. You can learn more about them here: https://www.otcmarkets.com/home.
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Med
As usual – Thx for the prompt answer Jim..!
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