Unfortunately, some companies do go out of business. OTC securities carry varying degrees of risk, just as securities trading in every other marketplace do (e.g., Enron, WorldCom, and HealthSouth). On the other hand, to presume that only speculative stocks trade over-the-counter would be as incorrect as to assume that only Blue Chips trade on the New York Stock Exchange.

One thing is for sure—you'll minimize your own risk by evaluating companies before you buy their stock.  
 

Percentage change in share price plus dividends from 12/31/01 to 12/31/04