Vanguard’s New OTC Restrictions Draw Some Investors’ Ire (2024)

In a move that is irking some investors, Vanguard Group’s brokerage is restricting most over-the-counter security trades starting April 28. Such OTC securities that don’t trade on regular exchanges are often the smallest “penny” stocks, but there are other reasons a security might not be exchange listed.

The company began notifying customers of the changes earlier this month. As Vanguard hasn’t disclosed many details on the reason or extent of the restrictions, the news set off a flurry of speculative posts and some criticism...

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