Over the Counter (OTC) stocks

Over-the-Counter (OTC) stocks, sometimes referred to as “pink stocks” are stocks that trade through a dealer network rather than being listed on a major stock exchange such as the TSX, NYSE, or NASDAQ.

The trades occur via listing services such as the Over the Counter Bulletin Board (OTCBB) or the Pink Sheets listing service.

OTC markets are an option for smaller companies that don’t qualify for listing or organizations that otherwise don’t want to list on the standard exchanges. These stocks are referred to as “unlisted”, while stocks on major exchanges are considered to be “listed”.

The risks of OTC/Pink stocks

The companies that trade on the OTC/Pink markets are often smaller, less liquid organizations that are unable to fulfill the listing requirements of exchanges.

This means that there are a number of potential risks associated with trading them - learn more about those potential risks in our Risks of trading OTC securities article.

Important to Note

As OTC stocks do not trade on a designated exchange (as defined by the Department of Finance), they are generally not available to hold within a registered account (ie. RRSPs, TFSAs, FHSAs, etc).

However, exceptions can sometimes be made if a specific OTC stock is cross-listed on a designed exchange. For more information on this, please contact us.

Note: As of Tuesday Oct 24, certain OTC securities are no longer able to be traded with GTD/GTC order durations. If you enter a GTC/GTD order for a security that is affected, you will receive an order rejected notification.  Please try again with an order duration of DAY.