over-the-counter market

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Over-the-Counter Market

Describing a security or trade that does not occur on an exchange. Very often, the OTC market includes securities that are very small and do not trade on an exchange because they do not meet market capitalization requirements. OTC securities may theoretically be traded informally (one may stand on a street corner and sell his/her stocks), but the term usually refers to securities traded through a dealer network.

over-the-counter market (OTC)

A widespread aggregation of dealers who make markets in many different securities. Unlike an exchange on which trading takes place at one physical location, OTC trading occurs through telephone or computer negotiations between buyers and sellers. Although stocks traded over the counter are often more speculative than listed stocks, virtually all government and municipal bonds and most corporate bonds are traded in the OTC market. See also National Quotation Bureau, OTC Bulletin Board, third market.

over-the-counter market (OTC)

a MARKET for corporate SHARES which have not obtained a full listing on the main STOCK MARKET. The UK's OTC market was abolished in 1992. See ALTERNATIVE INVESTMENT MARKET.
References in periodicals archive ?
1 Trader of Combined NASDAQ and Bulletin Board Stocks (Source: AutEx(R), BlockDATA, 2004; Ranking among investment banks, based on NASDAQ, NNM, SCM and advertised OTCBB combined share volume)
In addition, the firm is a leading trader of Bulletin Board stocks and other post-reorganization equities, having added a Bulletin Board desk in the fall of 2002 to its broad equity trading platform.
Hall said, "Although current NASD regulations do not require formation of independent governing committees for Bulletin Board stocks, it is our intention to move to a senior exchange, therefore, our elective decision to form two critical independent committees of the board was a decision that falls directly within our strategic plan.
All of the Company's Market Makers, who routinely make a market in OTC Bulletin Board stocks, will continue to make a market in the Company's securities and all Market Makers have been alerted to the impending trading change.
A national listing will give eLinear a much broader investor audience and will also allow us to be followed by certain brokerage firms that traditionally do not recommend Bulletin Board stocks.
Remember always the risks involved in Bulletin Board stocks.
Due to the recent mention in The Wall Street Journal about September's record volume in OTC Bulletin Board stocks (October, 10/03), we are anticipating even greater interest in our micro-cap clients.