Small cap stocks question?

Hi @David @PeterA and the whole T212 community, I was wondering if very small cap stocks are at risk of being delisted for the reason of being too illiquid with extremely low trading volumes and volatility. For example I own one CSBB a small bank in Ohio which moves seldomly sometimes not even once a week:

Just want to make sure that the illiquidity is not going to affect the stock for the reasons described above.

Thank you.

Yes, you’re right, it’s a real risk, specially if it is on a major stock exchange like the NYSE or Nasdaq.

But that stock is already on OTC/Pink Sheets, their stock requirements are low, you have to see their stock requirements to be traded.

One consequence of a stock being ilíquid is:

  • The wider spread Bid-Ask
  • The difficulty to exit (sell), specially on sell-off environments
  • Higher volatility
  • Sensible to pump and dump phenomenons
  • More easy to be burned (bankruptcy) by short-sellers
  • Trading platforms could “delist” or demand higher amount investment on that stocks

Note: On Bloomberg, Yahoo Finance and other financial sources, their last price was $37.50, so between that and the T212 price ($37.35), there is a -0.4% difference.

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Hi @Fabrizio82RC, I know the guy on your picture. It’s from my country. :slight_smile:

Mr. 5 golden balls. :sunglasses:

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Haha I thought I was good at pretending to be Cristiano Ronaldo yeah the greatest player together with Messi. Sad that probably he will leave Juventus this year…

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If he leaves, Juventus gets more free money. Isn’t he the most expensive player on Juve? And unfortunately he didn’t win any Champions League in Juventus.

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That’s true from a business point of view :grinning_face_with_smiling_eyes::cowboy_hat_face: