OTC Bulletin Board

OTC Bulletin Board

An electronic quotation listing of the bid and asked prices of OTC stocks that do not meet the requirements to be listed on the NASDAQ stock-listing system.

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OTC Bulletin Board (OTCBB)

A real-time quotation service for over-the-counter equity securities not listed or traded on a national securities exchange or on Nasdaq. In 2001 the OTCBB included over 330 market makers that provided firm quotations for over 3,600 domestic securities, foreign securities, and American Depositary Receipts. In January 1999 the SEC began requiring companies whose stocks are traded on the OTC Bulletin Board to report current financial information to the SEC. Securities delisted from the OTC Bulletin Board generally start trading through the Pink Sheets.

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OTC Bulletin Board (OTCBB). During the trading day, the electronic OTC bulletin board (OTCBB) provides continuously updated real-time bid and ask prices, volume information, and last-sale prices.

The OTCBB lists this information for unlisted US and overseas stocks, warrants, unit investment trusts (UITs), and American Depositary Receipts (ADRs).

It also lists Direct Participation Programs (DPPs) that are not listed on an organized market but are being traded over-the-counter (OTC).

Approximately 3,600 companies are tracked on the OTCBB. To qualify for inclusion, they must report their financial information to the Securities and Exchange Commission (SEC) or appropriate regulatory agency.