Sept 28 (Reuters) - Bank of America recently told its clients it was restricting the sale of stocks of tiny and unknown companies that trade over-the-counter for less than $5 each, CNBC reported cnb.cx/2DBPoEH on Friday, citing people with direct knowledge of the matter.
The bank started clamping down on its clients’ dealings in penny stocks in late July by banning purchase.
Six weeks later, it told its clients it was restricting the sales of risky securities, later amending the policy to give its clients time to exit their positions, CNBC reported the people as saying.
Bank of America did not immediately respond to Reuters’ request for a comment. (Reporting By Aparajita Saxena in Bengaluru; Editing by Shailesh Kuber)