Yesterday was a historical day for the stock market after the Dow Jones Industrial closed at its all-time high of 20,068. The biggest companies in the world celebrated, but what does this mean for the smaller companies listed on the OTC exchange?
During his campaign, President Trump campaigned for small businesses, promising to reform taxes and regulation and to bring jobs back to the United States. This past week alone, the President said he believes his administration could potentially cut regulations by 75%, maybe more.
All movements made by the White House thus far have leaned in favor of small businesses, and if yesterday was any indication, the major stock exchanges are responding well to the Trump Administration.
Down on the other end of the stock market, however, the OTC Markets did not close at record numbers yesterday. They have, however, been on the rise since 2010, and the possibility of the bullish market trickling down to this smaller exchange certainly exists.
“The United States has increasingly become non-competitive in the world in terms of taxes and regulations,” said William Hartman, CEO of Premier Biomedical Inc (OTC Pink: BIEI). “I see a more a attractive corporate tax rate structure for our industry and I see fewer regulations, [which] I believe will be a gigantic incentive for businesses to stay in the United States.”
In December 2016, Linda McMahon, former CEO of the World Wrestling Entertainment, was tapped by President Trump to head the Small Business Administration.
“I know what it’s like to take a risk on an idea, manage cash flow, navigate regulations, and tax laws, and create jobs,” she said during her Senate Hearing.
With more focus and aid heading towards small businesses, more accredited investors and traders could turn their attention to OTC companies where there is a greater potential for a large breakout from nano- and micro-cap companies, from those that are often referred to as “penny stocks”.
Yes, having more eyes and attention on the OTC Markets could attract more liquidity to these volume-starving companies, but more importantly, less regulation would simply give all smaller companies an opportunity to exist in a world that heavily revolves around giant corporations.