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Low priced securities

When do we categorize securities as Low Priced Securities?

At Keytrade Bank, financial instruments will be labelled as ‘Low Priced Securities’ when they belong to one of these categories:

  • Caveat Emptor. These are financial instruments of companies for which the OTC Markets Group has warnings. (Caveat emptor is Latin for “buyer, beware”)
  • Shell companies. These are empty corporations that only exist on paper and that do not have any activities (any longer).
  • Pink no information Tier. These are companies that cannot or are reluctant to give information to the market.
  • Expert market. This is a distinct market tier for a small number of companies within the OTC Markets Group.

We are charging a custody fee for these ‘low priced securities’. You can find in our tariffs how much it costs to keep these securities in your portfolio.

Low priced securities are to be recognised by the LPS tag next to the financial instrument in your portfolio. Below you can find an example of what this looks like.

On the transaction site:

LPS transaction site

On the app:

LPS app