Definition

1. Noun:
   • A security traded directly between parties without a centralized exchange: An OTC stock refers to shares of a company that are bought and sold through a decentralized network of dealers, rather than on a formal, centralized stock exchange like the NYSE or NASDAQ.

Usage Examples

• Noun:
  • The startup's shares are available as an OTC stock.
  • Investing in an OTC stock can involve higher risk and less public information.

Advanced Usage

• "to trade OTC stocks": to buy and sell these specific securities.
  • Some experienced investors specialize in trading OTC stocks.

Variants and Related Words

• Over-the-counter (OTC): (Adjective) Describing the market or method of trading. Often used interchangeably with the noun phrase.
  • The company moved from the OTC market to a major exchange.
• OTC market: (Noun Phrase) The decentralized network where OTC stocks are traded.
• Pink Sheets: (Proper Noun) A well-known electronic quotation system for many OTC stocks.

Synonyms

• Unlisted security: A security not listed on a formal exchange.
• Over-the-counter security: A broader term that can include stocks, bonds, and other financial instruments traded OTC.

Related Phrases

• Go public OTC: When a company first issues shares directly to the over-the-counter market.
  • Instead of an IPO on a major exchange, they chose to go public OTC.

Noun

1. stock that is not listed and traded on an organized exchange