08.00.00 GARBAGE SHARES: CHEESE IN A MOUSETRAP OR A ROUGH DIAMOND

Abstract

Тhe article shows that junk securities never have a smooth upward trend and any rise or fall occurs through a sharp trend reversal. An investor who transacts on OTC bulletin boards should understand that 95% of dark market stocks fail to be analyzed and the vast majority of dark stock investors lose money. Sometimes, after good results, stocks in the dark market may “darken” and not report for a long time. It's kind of like leaving on a high note. Or it may be that the numbers have become much worse, so the company is in no hurry to admit this fact. Garbage stocks are always a big risk, because in most cases, there is no verified information about the organization issuing shares and about the securities themselves. When placed on third-party sites, an external audit is not carried out, and real quotes may differ from those presented. It is also very difficult to analyze junk stocks due to the insignificant buying and selling activity, because a small proportion of investors buy securities with a low rating.