VC or Stock?

Discussion in 'Stocks' started by Avid_Consumer, Apr 22, 2012.

  1. Forgive my ignorance.

    It seems OTCBB and Pink Sheet stocks break down into two categories:

    1. Stocks formerly listed on major exchanges that failed to meet minimum requirements and were demoted to OTCBB/pink.

    2. Stocks that are new, development stage companies.

    Evaluating opportunities in the OTCBB/pink space, I'm wondering why any company with an objectively promising business model would be publicly available for investment via OTCBB/pink shares, vs Venture Capital investment.

    There must be other opaque risks that account for publicly available ownership, or justification for the regulatory/audit/administrative cost of issuing stock.

    If an opportunity is objectively valuable, why would stock be available at all?