OTC Stock Shell Risk Scoring: How to Screen Penny Stocks Programmatically

OTC Stock Shell Risk Scoring: How to Screen Penny Stocks Programmatically

When building retail trading tools or fintech apps that need to screen penny stocks and detect shell companies, one critical step is identifying OTC (Over-The-Counter) stock market entities. These are often the most speculative part of the securities markets, with many companies operating in a gray area due to their lack of regulatory oversight.

One way to approach this is by using an API endpoint that provides sample data for screening and risk scoring. Here’s how you can implement it in Python:

python
import requests

# Define the URL for the OTC stock dataset
url = "https://api.verilexdata.com/api/v1/otc/sample"

# Make a GET request to fetch the JSON data
response = requests.get(url)

# Check if the request was successful
if response.status_code == 200:
    # Parse the JSON data into Python objects
    otc_data = response.json()

    # Example: Let's say we want to filter out companies with a high risk score
    risky_companies = [company for company in otc_data if company['risk_score'] > 500]

    print("Risky OTC Companies:")
    for company in risky_companies:
        print(f"Company Name: {company['name']}, Risk Score