off-board trade

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Off-Board Trade

1. The trade of a listed security on the over-the-counter market. An off-board trade avoids the commissions that must be paid to floor brokers. Most of the time, off-board trades are large block trades involving institutional investors. Dealers must attempt to fill orders on an exchange before offering them over-the-counter. See also: Rule 19c3.

2. More generally, any over-the-counter trade.

off-board trade

The purchase or sale of securities, particularly those that are listed on an exchange, without using an exchange. An example is trading 10,000 shares of Federal Express common stock (listed on the New York Stock Exchange) in the over-the-counter market. See also Rule 19c-3, third market.
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