What does the BB in OTCBB mean?

Answer 1

BB means Bulletin Board.

Stocks on the main market have a market maker assigned. A market maker is a broker who will always stand on the other side of the trade, they will buy if you want to sell and sell if you want to buy. That role is important because it guarantees you will be able to trade. It isn't so important for the large cap stocks, but for the smallest companies the presence of a market maker means they can attract more investors because those investors will always know they can sell their holding if they need to.

Stocks quoted on the OTC (Over The Counter) market do not have a market maker. You post your order on an electronic 'bulletin board' but nothing happens unless someone out there is prepared to take the other side of the trade. You can't buy stock unless a current shareholder wants to sell and you can't sell stock unless someone wants to buy. There are many stocks on the OTC market that don't trade for weeks at a time. When they do trade there is usually a large cap between the 'buy' price and the 'sell' price.

Answer 2

Securities that don't meet the qualifications to be traded on the NASDAQ can be traded on their "Over The Counter Bulletin Board". These are risky investments, usually from small & unstable companies with "penny stock" prices.