OTC stocks vs penny stocks—what’s the difference?

Penny stocks are typically traded OTC, but not all OTC stocks are penny stocks. There’s no official definition of what constitutes a penny stock, but they are usually newly listed companies with market caps of less than $300 million, and they typically trade for less than $5. Learn more in our full guide to penny stocks .

Can I buy OTC stocks in a TFSA?

Typically, no. OTC stocks are not traded on designated exchanges, so they are usually not eligible to be held within registered accounts such as TFSAs. However, if a stock is also cross-listed on a designated exchange, you may be able to invest in it through a registered account.

What are pink sheets?

Pink sheets is another name used to refer to OTC stocks. This is due to the fact that OTC Markets, which was originally known as the National Quotation Bureau (NQB), listed the prices of stocks and bonds on pink and yellow papers. The NQB was renamed Pink Sheets LLC in 2000 and then became OTC Markets Group in 2011.

How many stocks can I trade on OTC markets?

Canadian investors can access thousands of OTC stocks. OTC Markets Group in the USA allows you to trade over 12,000 American and international OTC stocks.