Ignite International Brand Ltd. stock (BLIZF), a company that produces CBD oils as well as vape pens, is traded in the U.S. on the OTCQX. OTCQX is an over the counter exchange where stocks too small to be listed on a major exchange are traded. The exchange is the top tier of three OTC marketplaces and has higher restrictions than the other two exchanges in order to qualify for it.
OTC stocks are a bit different from those listed on the New York Stock Exchange or the Nasdaq, and are bought and sold in a particular way. OTC securities are unlisted as there is no central exchange, which requires each move to go through market makers who carry an inventory of securities. It’s important to know that not all brokerages handle OTC securities, so check with your broker to see if you can go forward with buying BLIZF.
Ally Invest, TD Ameritrade, E*Trade are three brokers that allow the buying and selling of OTC stocks.
Overview: Ignite Stock (BLIZF)
Dan Bilzerian’s Ignite stock went public this earlier this month, a development Bilzerian made known through an Instagram story in the afternoon on September 23. The successful poker player and Instagram playboy turned entrepreneur launched the company in 2017 and has since then used his social media pages (he has nearly 30 million followers on Instagram) to promote the brand.
BLIZF has a 52-week range of $0.24 to $1.29 and a market cap of 110 million. The average daily trading volume is 54 thousand shares.
According to the company’s website, Ignite is “a catalyst of change in the cannabis industry and the first premium global cannabis brand.” The products are sold in North America and Europe. The company went public on the Canadian Stock Exchange on June 4 of this year.
How to Buy Ignite
Buying and selling BLIZF isn’t like buying and selling any ordinary security since it is listed on an OTC exchange. Here’s what you can do to invest in Dan Bilzerian’s “premium cannabis” company.
- Find a Broker
As mentioned above, not all brokers allow investors to buy and sell OTC securities. Two that do are TD Ameritrade and ETrade, among others. The important thing to look at when deciding if a broker is right for you to buy BLIZF is to look at the fees.
Different brokers have different cutoffs for the fees involved with trading penny stocks. Some consider anything under $5 to be a penny stock, while others put the cutoff at $3 or even $1. A broker with flat fees will probably be the best way to go for BLIZF.
Some also have volume restrictions and will charge if you go over those limits. And then others will only allow you to place trades over the phone, so it’s important to make sure that the broker allows you to buy and sell BLIZF on the same platform you would other securities. - Decide if it’s right for you
Penny stocks are a different beast than many other securities, as they are much riskier and more volatile than other publicly traded companies, namely those on major exchanges. Nonetheless, despite being at currently $1.66, BILZF is penny stock exempt according to the SEC due to either total revenues or total assets. Low liquidity may also be an issue for investors due to the low numbers of shares being traded each day.
BILZF, since it is traded on the OTCQX, has to report certain financial information, unlike stocks listed on other OTC exchanges, which makes it a more solid investment than some other OTC stocks. The live-updated price for BILZF can be found on the OTC Bulletin Board.
Cannabis is a hot market to put money right now and many investors have been investing in marijuana as they see it as only growing in value going forward. - Define your order
If you decide the BLIZF is the next stock that you want to add to your portfolio, the next step is to decide how much of the stock to buy. There are two primary order types: limit orders and market orders.
With alimit order, you decide exactly how much you are willing to pay for the stock. A limit order will guarantee that you get the stock for a certain price, but the trade may not happen if the price doesn’t hit your desired amount.
A market order is slightly different and is simply you telling the broker-dealer to complete a trade at that moment for what BILZF is trading for then. - The broker completes the trade
Once you place the trade, it goes to the broker-dealer to complete it. There are a number of ways that the broker can complete the trade as it differs from how trades are executed on a major exchange.
The broker typically then contacts the market maker for BILZF, and the market maker will then give the broker the sell price set by the market. Depending on the order type, the broker will decide whether or not to place the order. For your own purposes of buying BILZF, it isn’t crucial to know the details of how the order is placed, but there are still places to read about it.
Compare Benzinga's top OTC Broker Picks:
So, You’re Going to Buy BILZF Stock?
If you’ve decided that Ignite is a company that you want to invest in, follow the above steps to get in on the early stages of this company. Bilzerian’s announcement on September 23, 2019, alone sent the stock skyward, going from about $1.10 a share to a peak of over $3.60.
As mentioned above, given the low liquidity of a low volume stock such as this one, be sure that you’re okay with your money possibly being inaccessible. Nonetheless, if you have faith that Ignite is going to grow, investing now while the stock is low could be a smart move.
Want to learn more about investing in OTC stocks? Read our article on How to buy OTC stocks and how to invest in marijuana.
Frequently Asked Questions
Q: What is an OTC Stock?
A: OTC stands for over the counter, and an OTC stock is one that is traded on an OTC exchange, of which there are several. The biggest difference between an OTC exchange and other major exchanges such as the NYSE is that instead of being traded on a centralized exchange, securities are traded through a broker-dealer network.
OTC exchanges are home to many small-cap companies, most of which are penny stocks (typically companies whose stock is worth less than $5). These securities typically don’t meet the requirements to be listed on major exchanges.
Q: Through which brokers can I buy Dan Blizerian’s stock?
A: Some of the top brokers are Ally, TD Ameritrade, and ETrade due to the ability to trade OTC stocks on their platforms and the fees associated with doing so.
Q: On which exchange is Ignite Stock (BLIZF) listed?
A: BILZF is listed on the OTCQX, which is the top tier of three OTC exchanges. It is run by OTC Links, a system developed by OTC Markets Group.