Why do OTCBB stocks trade at prices below 1 cent per share?
We have done research and have concluded that since June 2005, after the merger of Ameritrade and TD Waterhouse the majority of OTCBB stocks have traded below $0.01 per share.
On a daily review of the top 50 OTCBB stocks based on volume traded, 90% trade under $0.01 and most trade under $0.0009 cents per share basically destroying any value created by the managements of these companies.
It has been brought to our attention by other OTCBB companies that once their shares start rising in price, they are place on a restricted list by both Ameritrade and E-Trade preventing investors from purchasing the shares. AmeriTrade and E-Trade will only allow the "sale" of the shares creating an imbalance in the market for the shares forcing a drop in the shares price due to supply and demand.
We believe this is the primary reason most OTCBB stock now trade at price below $0.01 per share. We have developed a strategy to combat this tactic by Ameritrade and E-Trade.
If you are an OTCBB company wishing to correct the trading problems in your stock, contact us at investor_relations@mindspring.com
