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 ?
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.
We have been hindered in the past as certain institutions and brokers have restrictions that keep them from investing in or trading bulletin board stocks.
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.
DTN Financial Services, a division of Data Transmission Network Corporation (Nasdaq: DTLN), announces the addition of OTC Bulletin Board stocks to their Nasdaq Level II services.
00, pink sheet and bulletin board stocks, closed-end mutual funds, limited partnerships and royalty trusts, and non-U.
Thinly traded bulletin board stocks do not always receive the same type of valuation as their competitors traded through NASDAQ or NYSE.
While institutional investors and research organizations generally do not invest in or follow Bulletin Board stocks, being listed on Nasdaq will improve the exposure of the company and allow Xin Net to be evaluated as an investment opportunity from a much larger segment of the market.
Thousands of companies are engaged in the same process, brought about by a recent "phase-in and compliance rule" for OTC Bulletin Board stocks.
It appears that this stock manipulation occurs across the entire securities industry, and while it happens mostly in bulletin board stocks, we also believe it is happening in companies listed on the Nasdaq, the American Stock Exchange, and the New York Stock Exchange," said Carr.