Question:
When a stock symbol adds an “e” at the end, what does it mean? An example is “nxpn,” which has become “nxpne.”
David from Eville
Answer:
David, I hope your example is not a stock you own, as the answer you have sought is not good. The best way to answer your question is to give you the answer straight from the website of the U.S. Securities and Exchange Commission (SEC).
When a company that trades on the OTC Bulletin Board (OTCBB) becomes delinquent in its reporting obligations with the SEC (for example, it submits a required filing late or in an incomplete form), the letter “E” will be appended at the end of the company’s stock ticker symbol. After the “E” is added, the company is given 30 calendar days (60 calendar days for most foreign companies and domestic banks), known as the “grace period,” to become current in its reports. If the company files complete required reports during the grace period, the “E” will be removed. If the company fails to correct its deficiency, the company’s stock symbol will be removed from trading on the OTCBB.
One lesson from this is that we all should be careful about the trades we make. Mind, you, I’ve had my share of “bad” trades, and some of those stocks are still hanging around my portfolio, waiting for the time when they can come back into my good grace (oh yeh …). The point is that these stocks came early on in my trading life when I thought Bulletin Board stocks promised the greatest of returns. I learned one has to be very savvy about picking these stocks. The “story” may sound good, but in the end, it is about earnings, earnings, earnings.
Another lesson here is that early on in one’s trading life, he or she should know how to research, to find answers to questions such as the one you asked me. Research is the key to becoming a better trader. Learn this skill, and learn it well. It will pay huge dividends down the road, especially in the area of staying out of trouble.
Finally, learning the terminology of trading is imperative to a complete understanding of the trading craft. You should know your business and know it well before risking precious dollars …
Trade in the day; invest in your life …
