Over the Counter


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Related to Over the Counter: Over the Counter Market

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.
Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved

Over the Counter

The market for securities issued by companies usually not listed on any stock exchange. Over the counter (OTC) trading is the principal market for U.S. government and municipal bonds.
Copyright © 2008 H&R Block. All Rights Reserved. Reproduced with permission from H&R Block Glossary
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