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Can OTC stocks charge their shareholders a fee for owning their shares?
My broker (Firstrade) told me that this is the case, so they are making me a keep a minimum amount of cash in my account so that if they company charges Firstrade for me holding their stock, they will have cash available for it. I've never heard of anything like this. It sounds insane, but from what I know Firstrade isn't a scam company. Please help with explanation. Thanks and God bless
3 Answers
- A nobodyLv 72 years ago
Once upon a time, many OTC stock charged a certificate fee for each certificate issued. Those stocks held in street name also incurred a certificate charge which was charged to the firm hold the positions, such cost were absorbed by the firm.
Today, some of the OTC stocks still charge a few for having firms hold positions for the owners. This is the price the general public has to pay when they buy crap.
So to properly an answer you question, YES firms traded OTC can and do charge shareholders for carrying open positions.
Source(s): from The Street
