OTCBB

OTCBB

See OTC Bulletin Board.

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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.

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Over-the-Counter Bulletin Board (OTCBB)

What Does Over-the-Counter Bulletin Board (OTCBB) Mean?

A regulated electronic trading service offered by the National Association of Securities Dealers (NASD) that shows real-time quotes, last-sale prices, and volume information for over-the-counter (OTC) equity securities. Companies listed on this exchange are required to file current financial statements with the SEC or a banking or insurance regulator. There are no listing requirements such as those found on the Nasdaq and the New York Stock Exchange. Stocks that trade on the OTCBB have the suffix “OB.”

Investopedia explains Over-the-Counter Bulletin Board (OTCBB)

It is important to note that companies listed on the OTCBB are not a part of the Nasdaq exchange. OTCBB stocks are not especially large or stable and are considered very risky. As a result, very few OTCBB stocks are successful in making the jump from this market to the Nasdaq or any other major exchange because they are unable to meet the listing requirements. Furthermore, because OTCBB stocks tend to trade infrequently, they are less liquid, and consequently, the bid-ask spread is larger.

Related Terms:
• Nasdaq
• National Association of Securities Dealers—NASD
• Nonmarginable Security
• Over the Counter—OTC
• Pink Sheets