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Trading in unlisted securities that occurs on an organized exchange to accommodate members. This practice is not permitted at the NYSE.
Copyright © 2012, Campbell R. Harvey. All Rights Reserved.
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
The trading of a security on the floor of an exchange when the security is not listed on that exchange. Unlisted trading occurs when members of an exchange wish to trade the security but the issuing company has not applied for listing. Unlisted trading requires approval of the SEC.
Wall Street Words: An A to Z Guide to Investment Terms for Today's Investor by David L. Scott. Copyright © 2003 by Houghton Mifflin Company. Published by Houghton Mifflin Company. All rights reserved. All rights reserved.