How I Can Sell My Delisted Stock OTC
Here’s a summary of the main problem and solutions discussed in the conversation:
- Main Problem: User’s stock (CDAKQ) has been delisted from the stock exchange, and they are unable to sell it on their Fidelity account due to an error message.
- Possible Solutions Discussed:
- The delisted security may still trade over the counter (OTC).
- Investors might receive advance notice to divest or the stock could become worthless and remain as a placeholder in the account.
- Fidelity confirmed that they allow clients to trade most OTC stocks on their platform without any additional steps required.
Here’s the full thread
I purchased a some stock of a company and it has recently been delisted from the stock exchange. On my fidelity account when ever I try and sell it, it keeps saying error not found. So it there a way for me to sell it OTC or something?
Hey @Benji63, thanks for reaching out. Do you mind sharing the symbol you purchased so we can status it and see what your options are?
CDAKQ
Thanks for that. Generally, the delisting of a security is handled on a case-by-case basis; however, some general possibilities of what may happen when a security is delisted include:
-The security no longer trades on public exchanges, but may continue to trade Over the Counter (OTC)
-The security becomes worthless, and remains in the account with a placeholder identification number pending potential relisting in the future
-Investors will be given advance notice to divest
-The company is liquidated and proceeds, if any, are passed on to the shareholders
I’ll keep digging further into this one for you and see what your options might be. Generally the “Q” at the end of a symbol does hint at a bankruptcy proceeding or something similar, so information could still be unknown regarding how it will be handled.
Okay thank you
Just for future reference, how do I I trade over the counter?
I’ll be happy to clarify, @Benji63.
We do allow our clients to trade most over-the-counter (OTC) stocks on our platform. There’s nothing extra that needs to be done on your end, as most eligible OTC stocks will display naturally on our trading platforms. OTC stocks are simply securities that are not currently listed on the major exchanges.