Why are my orders for OTC stocks getting rejected?

Penny stocks, pink sheets, and OTC.BB equities are generally not traded on a major

enny stocks, pink sheets, and OTC.BB equities are generally not traded on a major U.S. Exchange. If you place an order to purchase one of these stocks, it may be getting rejected due to your stock falling into our manual review process for pink sheets. Kapitall Generation does not accept buy Market Orders or buy Stop Market Orders on pink sheet stocks. You may only place Limit Orders for these types of securities.

When you place an order for a pink sheet stock, you will see a warning before you place the trade notifying you that your order will require approval.



As per our company policy, if a trade falls into the pink sheet definition it goes through a manual review that is assessed based off of characteristics such as market capitalization, company financials, liquidity, principal amount etc. We reserve the right to restrict this activity in customer accounts. This is our policy in order to mitigate risk for both the firm and our customers.

Please also note that for all pink sheet positions, the maximum total share quantity that can be held is 500,000.

You can visit our FAQ on Limit Orders for instructions on how to place a limit order in your Generation Portfolio.

 

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