RE:Still too expensive Welcome to VRBFF Re-Markable! We can all wish upon a star with the Pink Sheets, now known as OTC Pink, is a platform that allows for the trading of securities that do not meet the listing requirements of major stock exchanges such as the NYSE or NASDAQ. Unlike exchanges like the TSX or TSXV, there are no minimum price requirements for securities listed on the OTC Pink market.This means that on the OTC Pink market, it is possible for share prices to trade below $0.01, even as low as fractions of a cent. However, trading at such low prices can be highly speculative and risky, as these securities are typically associated with small, thinly traded companies and may lack liquidity.Investors should exercise caution when trading securities on the OTC Pink market, as they may be more susceptible to manipulation and fraud compared to securities listed on major exchanges. Additionally, companies listed on the OTC Pink market may not be subject to the same level of regulatory oversight and reporting requirements as those listed on major exchanges, making it important for investors to conduct thorough due diligence before investing.
The Toronto Stock Exchange (TSX) and the TSX Venture Exchange (TSXV) typically do not allow share prices to fall below $0.01. This is because both exchanges have listing requirements that stipulate a minimum trading price for listed securities. For example, on the TSX, a company’s common shares must have a minimum price of $0.10 to maintain their listing, while on the TSX Venture Exchange (TSXV), there is no specific minimum share price requirement for continued listing, but the share price is typically expected to be above $0.01.
However, there may be instances where a company’s share price drops below $0.01 due to extreme market conditions or other factors. In such cases, the exchange may review the company’s listing status and take appropriate action, which could include issuing warnings or delisting the company’s shares.
Overall, while share prices below $0.01 are technically possible, they are generally not encouraged or supported by the TSX and TSXV listing requirements and regulations.