What are OTC Securities?
Over-the-counter (OTC) securities are securities that trade through a broker-dealer because they are not listed on a major exchange, such as NYSE or Nasdaq, in the United States. This may happen when companies do not meet the requirements to be listed on a formal exchange. Keep in mind, there may be additional steps and fees when trading OTC securities.
OTC securities include large-cap American Depositary Receipts (ADRs), foreign ordinaries, and small and micro-cap growth companies. An ADR is a security that represents shares of non-U.S. companies that are held by a U.S. depositary bank outside the United States
What OTC Securities does M1 offer?
M1 offers a select number of OTC securities that are highly liquid securities, actively monitored for volume and market capitalization.
OTC Securities available at M1:
- Adidas (ADDYY)
- Adyen N.V. (ADYEY)
- BHP Group Limited (BHPLF)
- Carlsberg A/S (CABGY)
- Grayscale Ethereum Classic Trust (ETCG)
- Grayscale Ethereum Trust (ETHE)
- Grayscale Bitcoin Trust (GBTC)
- Grayscale Digital Large Cap Fund LLC (GDLC)
- London Stock Exchange Group plc (LNSTY)
- Grayscale Litecoin Trust (LTCN)
- LVMH Moët Hennessy - Louis Vuitton, Société Européenne (LVMUY)
- Nestlé S.A. (NSRGY)
- Nintendo Co., Ltd. (NTDOY)
- Prosus N.V. (PROSY)
- Roche Holding AG (RHHBY)
- SoftBank Group Corp. (SFTBY)
- Tencent Holdings Limited (TCEHY)
- Tesco PLC (TSCDY)
- Volkswagen AG (VWAGY)
How do I invest in OTC Securities?
To place a buy order, you must have available cash in your account. M1 will not withdraw money from your bank account to complete a trade.
Available cash includes:
- Sell orders
- Incoming deposits
If the available cash for a user is less than their buy orders, M1 will prorate the requested buys.
Example: Jenny places a $100 buy order for Stock A. Jenny (if she has the funds available) will purchase $100 of OTC Stock A during the next trade window.