Nir Dotan

We know that investing in small cap stocks does not involve a large sum of money and is not considered a risk in its initial stages if you invest a small or reasonable amount. The risk of losing money in the investment is possible but if you do lose, you will only lose a small sum of money.

Investment after decades of slaving away within the four corners of your cubicle, you're finally looking forward to some rest and recreation. But you don't want to spend your wad of cash entirely on R&R, and you want to invest some of your retirement money to keep it flowing.

With the recent fall of stock prices in major stock exchanges such as the New York Stock Exchange and NASDAQ, some companies whose stocks have been trading in these exchanges may be moved, or have been moved to the Over the Counter Bulletin Board (OTCBB), and/or the Pink Sheets.

Over The Counter Stocks, or OTC stocks, are stocks that have very low market capitalization. Thus, they will not be able to comply with the regulations laid down by the Securities and Exchange Commission (SEC) to be listed on stock exchanges.

Over the Counter Stocks (OTC stocks) are financial instruments that are traded directly between two parties. Over the counter trading of stocks is differentiated from exchange trading in several ways.