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Implications:The Eligibility Rule demonstrated the flaw of the market makers system, Greed, and started the Great OTC Market Explosion, shares were ran up based on no reason and distributed to the public. Lots of stocks hit their historical high during this period. In addition, lots of self-proclaimed gurus had started websites and newsletters to recommend bulletin board stocks based on the results obtained during the market explosion, and most of them faded away quickly. The stocks' performance during this period are often promoted as what the stocks could do in the past, the truth is, any historical high data from October 1999 to April 2000 should be disregarded. Consequently, this explosion has help to promote the OTC market to the public, and truly get this market going in a healthy pace. This can be proved by the increase of shares being traded annually. However, a lot of shares are created from dilution due to the price depression of most of these bulletin board stocks, this has to be factored into the annual increment of trading volume.
OTC
Market Related Historical Events:1999
- January - June
Eligibility Rule Discussion.
- July
Beginning to Implement the Eligibility Rule.
- October
Prelude of the Great OTC Market Explosion, aka The Period of Pigs can Fly (October 1999 to April 2000).
2000
- January
The First January Effect on the OTC Market.
- April
The End of the Great OTC Market Explosion.
The Crash of NASDAQ.
The Beginning of Economy Slow Down.
- May - July
The Great OTC Market Depression.
- June
Eligibility Rule Phase-in Complete.
- August
The Real Beginning of the OTC Market.
2001
-January
January Effect
- September
Terrorists Attacked USA, the Longest Market Halt since World War II.
The Beginning of a New Era.