How will the transition from NYSE to OTCQX affect liquidity and bid‑ask spreads for AC's shares?

The move from a tier‑1 exchange to the OTCQX will almost certainly compress the depth of the order book. NYSE market‑maker networks and the exchange’s internal order‑matching rules normally keep a large pool of displayed liquidity and keep spreads tight (often ≤ 1‑2 ¢ on a $10‑$15 stock). OTCQX, while the most reputable of the over‑the‑counter tiers, relies on a handful of designated market makers (DMQs) and a thinner set of institutional participants. In practice you can expect daily volume to fall 30‑50 % in the first few weeks and the quoted bid‑ask spread to widen to 5‑10 ¢ or more, especially if price action is volatile. The spread will likely be more variable—tight during quiet periods but quickly expanding if the stock moves sharply or if market‑maker inventories are strained.

Fundamentally, the company’s valuation drivers (asset‑backed financing, earnings growth, balance‑sheet health) remain unchanged, but the perception of “exchange risk” can add a pricing penalty. Investors who require registered‑exchange liquidity (e.g., large mutual funds, certain pension accounts) may exit, further draining volume, while retail and niche institutional buyers who are comfortable with OTC trading will fill the gap. From a trading standpoint, you should (1) adjust entry/exit thresholds to accommodate the wider spread—aim for at least a 0.5‑1 % price move before committing; (2) use limit orders rather than market orders to avoid unnecessary slippage; and (3) monitor the DMQ quotes closely, as they can serve as an early signal of deteriorating liquidity. If the stock can sustain its fundamentals and the company continues to communicate transparently, the spread may gradually compress over several months as market participants acclimate to the OTCQX venue. Until then, treat AC’s post‑delisting shares as a higher‑cost‑of‑trading position and size positions accordingly.