OTC stocks

Over-the-counter stocks refer to stocks listed and traded on the Taiwan Securities Over-the-Counter Trading Center (referred to as the OTC Trading Center). They are also called over-the-counter stocks or over-the-counter stocks. OTC stocks are different from listed stocks. Listed stocks refer to stocks listed and traded on the Taiwan Stock Exchange (Taiwan Stock Exchange for short). The application, review, listing, trading, supervision and other procedures for OTC stocks are all handled by the OTC buying center, while the Taiwan Stock Exchange is responsible for listed stocks.

OTC stocks are characterized by smaller scale, higher growth potential, and stronger innovation, but they are also accompanied by disadvantages such as higher risks, opaque information, and greater volatility. Therefore, investing in OTC stocks requires sufficient risk tolerance and professional knowledge, and you must pay close attention to the company's operating conditions, industry dynamics, market trends and other factors.

The types of OTC stocks can be divided into three major categories: general OTC stocks, innovative high-growth OTC stocks and emerging OTC stocks. Generally, over-the-counter stocks refer to over-the-counter stocks that meet the basic conditions stipulated by the over-the-counter buying center and are listed for trading after passing the review. Their application qualifications include: operating income of more than 100 million yuan in the last two years, and net profit after tax in the last year of More than 10 million yuan, the average earnings per share in the past two years has reached more than 0.5 yuan, the net value per share in the last year has reached more than 5 yuan, and the number of outstanding ordinary shares has reached more than 10 million shares, etc. Generally, OTC stocks are traded in the same way as listed stocks, using a computerized matching and trading system.

Innovative high-growth OTC stocks refer to OTC stocks with innovative technologies or business models and high growth potential. Their application qualifications include: operating income of more than 50 million yuan in the past two years, and annual growth rate of operating income in the past two years. Reaching more than 20%, the net profit after tax in the last year has reached more than 5 million yuan, the average earnings per share in the last two years has reached more than 0.2 yuan, the net value per share in the last year has reached more than 3 yuan, and the number of outstanding ordinary shares has reached 500 Ten thousand shares or more. The trading method of innovative high-growth OTC stocks is the same as that of general OTC stocks, using a computerized matching and trading system.

The OTC stocks on the Emerging Stock Board refer to the OTC stocks listed and traded on the Emerging Stock Board. Its application qualifications include: the operating income in the past two years has reached more than 30 million yuan, and the net profit after tax in the last year has reached 1 More than one million yuan, the average earnings per share in the past two years has reached more than 0.1 yuan, the net value per share in the last year has reached more than 1 yuan, and the number of outstanding ordinary shares has reached more than 3 million shares, etc. The trading method of over-the-counter stocks on the emerging OTC board is different from that of general over-the-counter stocks. A telephone quotation and transaction system is adopted, that is, the brokerage provides buying and selling quotations through the phone or the Internet, and the over-the-counter buying center makes a unified announcement.

The advantage of investing in OTC stocks is that you can share in the company's growth and innovation and have the opportunity to receive high returns. However, investing in OTC stocks also has many risks and challenges. For example: the trading volume and liquidity of OTC stocks are low, and they are easily manipulated by large investors or insiders; the information disclosure and supervision of OTC stocks are imperfect and prone to accidents. Fraud or violation of regulations; the industrial structure and competitive environment of OTC stocks are relatively unstable and easily affected by technological changes or market changes; the tax and legal regulations of OTC stocks are relatively unclear and prone to disputes or disputes.

Therefore, when investing in OTC stocks, you need to pay attention to the following: 1. You must have sufficient information sources and analytical capabilities, and you must continue to track the company’s financial statements, operating plans, product development, market strategies and other important information; 2. Have reasonable investment goals and risk assessments, and choose the types and quantities of OTC stocks that suit you based on your own risk preferences and capital needs; 3. Have good trading strategies and disciplines, and abide by the OTC trading rules Rules and legal norms to avoid improper influence or temptation; 4. Have a long-term investment vision and patience, and believe in the company's core competitiveness and future development potential, and do not follow the trend or panic.

In short, OTC stocks are investment targets with high growth and innovation, but they are also accompanied by high risks and high volatility. Before investing in OTC stocks, investors must be fully prepared and understood, and must have reasonable expectations and judgments. Only in this way can you find your own opportunities and value in the OTC stock market.