over the counter stock

Thân thiện

Shares of the company are traded as over the counter stock.

Definition

Noun: A security, specifically a share of ownership in a corporation, that is traded directly between two parties without the supervision of a formal, centralized exchange like the NYSE or NASDAQ. These transactions often occur via dealer networks.

Usage

This term is used to describe the trading method and status of a specific equity security. * The company is too small for a NASDAQ listing, so its shares are traded as an over the counter stock. * Investors should be aware that over the counter stocks can be more volatile and less liquid.

Advanced Usage

• "to trade over the counter": This is the verbal phrase describing the action. The stock itself is the "over the counter stock."
  • The broker informed me that the security trades over the counter.
• Often abbreviated as OTC stock in financial contexts and ticker symbols.

Variants and Related Words

• OTC stock (n): The common abbreviated form.
• Over-the-counter market (n): The decentralized market where these stocks are traded.
• Listed stock (n): The antonym; a stock traded on a formal exchange.
• Pink Sheets (n): A service that provides price quotes for many OTC stocks, often used synonymously with higher-risk OTC trading.

Synonyms

• Unlisted stock (n): A stock not listed on a formal exchange.
• Off-exchange security (n): A more formal term for a security traded outside of regulated exchanges.

Related Phrases

• Bulletin Board stock (n): Refers to OTC stocks quoted on the OTC Bulletin Board (OTCBB), a regulated electronic trading service.
• Penny stock (n): While often traded OTC, this term emphasizes a low share price (typically under $5) and high risk, not the trading venue itself.

Học thuật

Noun

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

Từ đồng nghĩa

• OTC stock
• unlisted stock