[mage lang="" source="flickr"]otc penny stock[/mage]
A company says it will give me shares of its stock , which is publicly traded.?
However, this is penny stock and is traded in OTC.
ASSUMING I am “allowed” to sell the stock (after vesting, after the “period”).
Suppose I have 1000 shares. Let’s say the stock trades at 60 cents. If I sell it all, will I get 600 dollars? What if people don’t buy my stock?…then it’s pointless…right?
The reason I’m asking is because I have an choice to choose: take the stock or cash.
If I am able to sell the stock no matter, then of course I take the stock. But if no one buys my stock….then it’s worthless, right?
If you are given stock it may be subject to SEC Rule 144.
Basically there are restrictions on when you can sell, how much you can sell, etc.
If you are an employee, yes, they may have a vesting period. Find out the terms of the stock.
I would not assume that today’s value is anything you can expect to earn in the future. Penny stocks are highly speculative and easily manipulated. Most have negative equity, hence worthless paper to begin with.
If there is little or no volume in the stock, the bid ask spread may also be very wide and difficult to sell at a “fair price.”
I would rather take a salary or cash up front than take shares of a worthless penny stock.
Penny Stock FAQ LInks
How to Track and Monitor Penny Stock Promotions with OTC View