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 ?
Unless the Nasdaq National Market listing is extended, the Class B Common Stock will be de-listed and there will cease to be an active over-the-counter trading market for the Corporation's Class B Common Stock.
Accordingly, she was one of the key participants in the negotiation and drafting of the Dodd-Frank derivatives provisions, which paved the way for the regulation of previously unregulated over-the-counter trading.
It would be unacceptable if banks collectively blocked exchanges to protect their revenues from over-the-counter trading of credit derivatives," EU competition commissioner Joaquin Almunia said.
This was allegedly because they feared involvement by the exchanges would cut into their huge profits from over-the-counter trading.
Over-the-counter trading although a popular notion amongst traders has recently seen its first fruits within Namibia (in a formalised context) with Agra getting on board with the new service.
As the domestic market matures and opens up, the exchange will launch over-the-counter trading, gold ETFs, Friday night trading and improve the leasing market," Shanghai Gold Exchange Chairman and President Wang Zhe told a precious metals industry conference in Hong Kong on Nov.
However, London Gold and Commodities Exchange warns both big and small time investors that there is always risk related with trading particularly spot FOREX and over-the-counter trading.
Over-the-counter trading for the ADR in the United States is still available, it said.
A SHARP rise in gross winnings from fixed odds betting terminals helped Ladbrokes offset a dip in over-the-counter trading for the three months ended September 30, writes James Burn.
Over-the-counter trading also contributes to the opacity of derivatives markets, further reducing competition and increasing the margin enjoyed by the traders - and the prices that final users (mostly industrial firms) must pay.
The improvement is predicated on more over-the-counter trading moving to exchanges, increased use of algorithmic trading by intermediaries and investors and cyclical growth drivers like continued volatility in the equity market.
The agricultural team will offer over-the-counter trading, adding to its existing futures business on exchanges.

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