Definition

Noun: * Over-the-counter market: A decentralized financial market where securities (such as stocks, bonds, or derivatives) are traded directly between two parties, typically via telephone or electronic trading systems, without the use of a formal, centralized exchange like the New York Stock Exchange (NYSE).

Usage

The term "OTC market" describes the specific trading environment and its operational method. It is often used to contrast with exchange-traded markets. * The company's shares are listed on the OTC market rather than a major exchange. * Trading on the OTC market can involve less stringent reporting requirements. * Many bonds and foreign currencies are traded in the OTC market.

Advanced Usage

• "to be quoted OTC": Refers to a security whose price is listed on an over-the-counter quotation system.
  • The penny stock is quoted OTC under the symbol "XYZ."
• "OTC trading": Describes the act of buying or selling securities in this market.
  • The firm specializes in OTC trading of corporate debt.

Variants and Related Words

• Over-the-counter (OTC): The full adjectival form.
  • OTC securities, OTC transaction.
• OTCBB (Over-the-Counter Bulletin Board): An electronic quotation system for OTC securities.
• Pink Sheets: Another quotation system for OTC securities, now known as OTC Markets Group.
• Exchange-traded: The antonym, referring to securities traded on a formal exchange.

Synonyms

• Off-exchange trading
• Unlisted securities market (in some contexts)

Related Phrases

• "Trade over-the-counter": A verb phrase meaning to conduct a transaction in this market.
  • These derivatives typically trade over-the-counter.

Noun

1. a stock exchange where securities transactions are made via telephone and computer rather than on the floor of an exchange