Otc Security (Noun)
Meaning
A security traded in the over-the-counter market.
Classification
Nouns denoting possession and transfer of possession.
Examples
- The company's stock was delisted from the major exchange and is now traded as an OTC security.
- Investors can buy and sell OTC securities through a broker or online trading platform.
- The OTC security market is less regulated than the major exchanges, which can increase the risk for investors.
- The company's OTC security was subject to a trading halt due to a pending merger announcement.
- OTC securities are often used by companies that do not meet the listing requirements of the major exchanges.