penny stock
August 27, 2013 12:23 PM   Subscribe

Need help in finding a brokerage.

Through a long series of events I ended up owning over 413k of a small firm in Australia and traded on the Australian exchange. The stock is currently about 7 cents. Ok, so I wanted to one day be able to sell them and so far I can't find a firm that will hold the shares. I have asked Merrill Lynch, Fidelity, Schwab, etc and they all refused. My frustration is growing. Anyone have ideas?
posted by jtexman1 to Work & Money (4 answers total)
 
Have you tried Interactive Brokers? Are you in the US or Australia? Who is trying to deliver these shares?

It could be a number of things where a US based broker is unwilling to take delivery from whatever legal entity is presenting the shares.
posted by teabag at 12:29 PM on August 27, 2013


Yeah, it would help to know where you're located.

Assuming you're in the United States, Interactive Brokers is a possibility.

Have any of the places you mentioned given you a concrete reason for not wanting to hold the shares?

There may be costs associated with holding the shares that the firms don't want to take on.

Have you tried getting someone in Australia to buy the shares from you?

Etc.
posted by dfriedman at 12:40 PM on August 27, 2013


Response by poster: Sorry. I am in the US. Houston specifically. I have not tried Interactive Brokers. The transfer agent is Link Market Services in Australia. The reasons Fidelity gave were 1. the stock is below 25 cents, and 2. very illiquid.
posted by jtexman1 at 12:41 PM on August 27, 2013


Ah, if it's priced at $0.07 per share (I'm assuming that's Australian dollars) and it's an illiquid stock you're going to have trouble finding a brokerage in the United States who will be willing to hold the shares for you.

Has Link Market Services been able to give you any advice as to whom to transfer it to? Are there brokers in Australia who can hold it in your name?
posted by dfriedman at 12:46 PM on August 27, 2013


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