Replies to post #27090 on Ilustrato Pictures International Inc (ILUS)

[lanemyers]

Lol. Sure they can.

[kingofsting]

Fake news !!


Can institutions invest in OTC?

This myth may have gained credence based on historical restrictions or prohibitions on OTC stocks, but these are no longer true. Institutions follow opportunity—be that in penny stocks or larger, more liquid securities.” While many small/micro-cap professionals may have heard that institutions can't trade their stocks.Jan 28, 2019

[rayf]

They can but they just don't risk is too high

[nsomniyak]

There is no law or regulation that says that an institution can't buy an OTC stock.

That said, many institutions have internal bylaws that restrict the range of stocks they can buy. Some of those bylaws may be of the form "must be on Nasdaq or NYSE", but more likely they would be things like must have audited financials, must have a certain market cap, must have a given level of daily dollar volume, etc.

Institutions CAN buy otc stocks, but few otc stocks meet the criteria applied by most institutions to everything in their portfolio.