Over-the-Counter Bulletin Board

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