Trading in OTC equity securities carries a high degree of risk and may not be appropriate for all investors. In particular, OTC equity securities present trading risks, as they are generally "thinly traded" or more illiquid than exchange-listed securities, which tends to increase price volatility and impair your ability to buy or sell within a reasonable period of time without adversely impacting your execution price(s). As a self-directed investor, you assume full responsibility for each and every transaction in or for your account and for your own investment strategies and decisions, including with respect to any transactions in OTC equity securities.
To the extent that you participate in any OTC equity security transaction, you acknowledge that you understand that OTC securities may be subject to different trading rules and systems than other securities, and that you may encounter significant delays in executions, reports of executions, and updating of quotations in OTC equity securities. E*TRADE, at its sole discretion, may require you to place limit orders in order to trade certain OTC equity securities, and reserves the right to reject any order. Although market data relating to OTC equity securities may be updated from time to time, displayed pricing information and other market data relating to OTC equity securities may not be current at any given point in time.
Under certain circumstances, OTC equity securities may not be registered with the Securities and Exchange Commission (SEC), and therefore are not subject to the same reporting, disclosure, and regulatory oversight requirements as apply to SEC-registered securities. Investors are strongly advised to proceed with caution and thoroughly research companies before transacting in OTC equity securities. In some cases, issuers of OTC equity securities may have no obligation to provide information to investors and, in many cases, reliable information regarding issuers of OTC equity securities, their prospects, or the risks associated with the business of such issuers may not be available. As a result, it may be difficult to properly value an investment in an OTC equity security. Accordingly, you should exercise additional care and perform thorough diligence before making any investment decision regarding an OTC equity security.