It’s likely that the company whose stocks I’ve purchased will be delisted from the NYSE and appear on the OTC market. What happens to my shares in my Trading212 account then? Do I lose them all? Are they transferred from NYSE to OTC?
First and foremost, can I still sell them?
Also, I’m curious if the company can return to trading on the NYSE eventually? What does that process look like? Generally, what strategy should an investor adopt in such a case – is it better to sell as soon as it appears on the OTC? Or is it better to remain calm?
Nothing is required on your end. If a company change its listing from the NYSE to the OTC Markets, we’ll reflect that accordingly. Unless, halted/restricted by the exchange, the company will be tradable on the OTC Markets.
You can keep an eye ‘Corporate events’ category as we post updates on a daily basis.
If an instrument loses ISA eligibility, we notify all ISA shareholders and close the positions after a predefined deadline.
The process is the same - in the event of an uplisting, the corporate action will be reflected, and your holdings will remain unchanged in the account where they are held.
If a company you’ve put money into gets kicked off the NYSE and ends up on the OTC market, you won’t lose your shares in your Trading212 account. They’ll probably just move over to the OTC market, where you can still sell them, but it might be a bit more of a hassle than selling on the NYSE.
If the company wants to get back on the NYSE, they can, but they’ll need to get their act together and meet some strict rules.
As for what to do in this situation, it’s really up to you and how much you believe in the company’s future. Some folks might decide to sell their shares to avoid losing more money, especially if things look grim. Others might hang on to their shares, hoping things will get better. It’s important to do your homework, maybe even talk to a financial advisor, and make a choice that fits with your risk tolerance and what you want from your investments.
