There is a strong upward movement in the price of OTC securities which are to be listed on an exchange, but this increase generally tapers off after the listing.

Question

Quizplus · Accepted Answer

As might be expected, a strong upward movement is associated with securities that are to be listed, but there is also a strong sell-off after the event has occurred. Research by Van Horne, Fabozzi, and others indicates that the total effect may be neutral. Research by Ying, Lewellen, Schlarbaum, and Lease (YLSL) would tend to indicate an overall gain.

There Is a Strong Upward Movement in the Price of OTC