Otc Market (Noun)
Meaning
A stock exchange where securities transactions are made via telephone and computer rather than on the floor of an exchange.
Classification
Nouns denoting man-made objects.
Examples
- The company's stock began trading on the over-the-counter bulletin board, also known as the OTC market, after delisting from the NASDAQ exchange.
- In the OTC market, stock prices are quote-driven, meaning market makers quote both a buy and a sell price for a specific security.
- Many small companies and foreign firms without a significant US presence list their shares on the OTC market.
- The lack of strict reporting requirements in the OTC market made it more challenging for investors to evaluate company performance.
- OTC market participants are subject to fewer regulations than those involved with major US stock exchanges.