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.
Noun
-
stock that is not listed and traded on an organized exchange
Khám phá thêm
Các từ liên quan
Từ đồng nghĩa
