Cash App Investing Supports Selling Shares Over-the-Counter (OTC)
In the instance a stock is delisted from a major exchange, Cash App Investing now supports selling shares in Over-the-Counter (OTC) markets in limited circumstances.
Over-the-Counter (OTC) stocks are companies whose shares are not listed on a national exchange, such as NYSE or Nasdaq. While Cash App Investing does not support purchasing securities in the OTC markets, we may provide the ability to sell shares OTC for companies whose stock is delisted from national exchanges.
To sell a stock that trades OTC using Cash App Investing:
- Tap the Investing tab on your Cash App home screen
- Scroll down to My Portfolio
- Select the company whose stock you want to sell
- Press Sell
- Press Confirm to sell your position
- Confirm with your PIN or Touch ID
Keep in mind, if you attempt to sell stock after market hours, your order will not be placed until after the next market open. You can only cancel pending orders before they are filled.
As a self-directed investor, you are fully responsible for all trades placed by you. It is your responsibility to research and understand the risks and consequences of your trades.
OTC trading is different from trading on national exchanges and involves additional risks. Before submitting an OTC trade you should familiarize yourself with the unique aspects and risks of OTC trading.
Important information about OTC trading:
- OTC markets are less liquid (“thinly traded”), less transparent, and more volatile than national exchanges. OTC securities often exhibit high price volatility and erratic market movements.
- There is no guarantee you will receive a specific price per share, time of trade, or that we will be able to place your trade at all.
- The price you may see on national exchanges may not be the price available in the OTC market.
- You will be charged SEC and TAF fees for each sell trade, as follows: SEC Fee is $.00229 per $100 of principal and is rounded up to the nearest penny. TAF Fee is $0.000130 per share, rounded up to the nearest penny, and will not exceed $6.49.
- OTC trades may not be placed immediately and may be batched together with other customer orders, and may not be placed for hours or days.
- It may be difficult to properly value an investment in an OTC security. Reliable information regarding issuers of OTC securities, their prospects, or the risks associated with investing in such securities may not be available.
- Certain issuers of OTC securities have no obligation to provide information to investors.
- Some issuers register securities with the Securities and Exchange Commission (SEC) and may provide regular reports to investors. Others however may not be required to maintain such registration or provide such reports.
- Securities may continue to be traded if issuers are delinquent in their reporting obligation to the SEC or other federal or state regulatory agencies.
- Penny stocks have not been approved or disapproved by the Securities and Exchange Commission (SEC).
- The SEC has not passed upon the fairness, the merits, the accuracy or adequacy of the information contained in any prospectus or any other information provided by an issuer or a broker or a dealer of penny stocks.
- Trading OTC securities is subject to significant risks, increased regulatory requirements and oversight, and additional fees.
- Market information for OTC securities cannot be guaranteed and, in some instances, quote information may not be available. The price shown in app may not be from the venue where your trade is placed or executed.
Cash App Investing is providing the ability to sell OTC as an accommodation in limited circumstances. This feature may only be available for a limited time.
Selling shares may have tax implications. If you have questions about your particular tax situation you should consult a tax advisor. Cash App Investing does not provide investment advice or recommendations. Investing involves risk and you may lose money. Review the Disclosure Library for more on the risks involved with investing. Brokerage services provided by Cash App Investing LLC, member FINRA/SIPC and a subsidiary of Square, Inc.