October 27, 2019
This proposed legislation will have a very serious, and potentially very negative impact on my personal portfolio. I have spent the last 20 years assembling my portfolio, which involves researching companies, and investing in those that I deem of high quality. I have often been right, wrong (Valeant, GE, AIG, C, Worldcom), and passed on some questionable investments (and missed some great ones). Being right, and wrong are an important part of any investing and capitalist landscape.
Why not add an extra release form that needs to be signed in order to invest in these companies (informing people of the risks assuming they are unwilling to learn them themselves)? I could place 100% of my portfolio in short dated options in some garbage foreign listed company - but I can't make a small bet on a domestic small company that I can directly interact with, and receive all the financial info that I ask for? There are thousands of worse things going on in the market than OTC stocks. While every company there is not 100% admirable (neither are they on the major exchanges), it is separating these companies from the others that make the market work, and provide the returns that it does. Just because some people have been harmed (on every exchange), does not mean that investing should end. It means that we need to learn, move on, and do better next time.
I hope that OTC Markets and some of the companies that will be banned are given the same attention that NYSE and NASDAQ will be.
Thank you for reading these thoughts.