Guidelines for
Depositing OTC Securities
What is an Over-the-Counter
Security (OTC Security)?
A security that trades
via a dealer network as opposed to a centralized
stock exchange such as the New York Stock Exchange or American Stock
Exchange is referred to as an Over-the Counter (OTC) security.
The NASDAQ is considered a stock exchange. As such,
OTC stocks are generally unlisted stocks which trade on the
Over-the-Counter Bulletin Boards (OTCBB) or on the Pink Sheets.
Does World Trade Financial
Corporation accept deposits in OTC Securities?
Yes, provided we are able to demonstrate compliance with securites
regulations.
What is the process for
depositing OTC Securities?
Step One:
Read this FAQ section in its entirety.
Step Two:
Complete either the
Equity Deposit Questionnaire
(EDQ)
or the Quick
Facts Questionnaire (QFQ). The EDQ is a lengthy
questionnaire
that will ultimately be required for all deposits. We have
found that many shareholders are unsure how to answer many of the
questions, so we created the QFQ. The QFQ is a simple one
page questionnaire that will provide a representative with World Trade
Financial Corporation the basic information needed for them to evaluate
the deposit. Upon completion, please fax your completed form to (619)
325-2630 or email the form to cs@worldtradefinancial.com.
There is no fee associated with reviewing a prospective
deposit involving OTC Securities.
Step Three:
A representative from
World Trade Financial Corporation will contact
you regarding your potential deposit. The initial review will generally
be completed within 24-48 hours. If it is determined that the
shares appear to be acceptable for deposit and potentially resold, we
will request an EDQ, if one was not provided, and supporting documents
to evidence compliance with federal securities laws.
Step Four:
Submit new account forms and fund your account (see
Initial and Minimum Equity Requirements within the New Accounts
section).
Are there OTC Securities that
are not accepted?
- We may not accept shares of Pink Sheet securities that fall under the categories of Distressed, Dark/Defunct, or Toxic as classified by Pink OTC Markets Inc. on www.otcmarkets.com
- We may not accept shares of non-SEC reporting OTC Securities received for services unless you are a licensed professional such as an attorney, accountant, etc.
- We may not accept shares of OTC Securities that represent more than ten percent (10%) of the public float.
- We may not accept legal opinions that are drafted by "Prohibited Attorneys" as categorized by Pink OTC Markets Inc. on www.otcmarkets.com
- We may not accept S-8 shares issued to consultants.
You may also be interested in:
Share Deposits and
Withdrawals
Opening a New Account
Trading
Disclosure
