Understanding delisted and worthless stocks and ETFs

Securities in your investment account may change status, becoming either delisted or worthless. While these terms are sometimes used interchangeably, they actually describe different situations. Understanding the difference is important for managing your investments effectively.

Delisted securities

• Removed from major stock exchanges
• May still have value
• Can often still trade over-the-counter
• May become harder to buy or sell

Worthless securities

• Have no market value (or almost no value)
• May or may not be delisted
• Usually can't be sold on any market

A security can be delisted without being worthless, and a security can become worthless without being delisted.

Important considerations

• Cease Trade Orders (CTOs): If there's a CTO on the security in your province, you may not be able to remove it from your account.
• Tax implications: Removing or keeping a worthless security can affect your taxes. Consider seeking professional advice.
• Future value: There's a small chance a delisted security could regain value. Consider this before removing it from your account.

For more information or to start the process of removing a worthless security, please contact our support team.

Options for delisted stocks and ETFs

If you own a delisted stock or ETF:

1. Continue holding the shares in case the stock or ETF is eventually re-listed.
2. Sell the shares if they're trading over-the-counter (you can place a limit sell order).

Options for worthless stocks and ETFs

If you believe a stock or ETF in your account has become worthless:

1. Remove the stock or ETF from your account.
2. Keep the stock or ETF and potentially claim a loss on your taxes.

Removing a worthless stock or ETF

To remove a delisted stock or ETF, contact our support team to check if it's eligible for removal.

If eligible, you'll need to fill out a form to authorize the removal of a worthless stock or ETF. This form transfers ownership of the security to Wealthsimple Investments Inc. The removal will appear as a $0 sale on your tax slip, allowing you to claim it as a loss.

Keeping a worthless stock or ETF

If you choose to keep the security, you may be able to claim a capital loss on your tax return under certain conditions. This applies if the company has

• gone bankrupt,
• been shut down by court order, or
• Stopped doing business and the investment has no value.