Over the Counter is the counterpart to an Exchange - NYSE for example.
It describes the method of trading in a decentralized market as opposed to a centralized market like an Exchange.
In the industry OTC is used for stocks that do not qualify for the NASDAQ.
You can think of it like this - Bulletin Board (or pink sheets) is lowest end. They want to graduate to OTC. The NASDAQ is actually a select group of OTC stocks.
Any broker can trade stocks that trade over the counter.
2007-01-28 17:02:12
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answer #1
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answered by Anonymous
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OTC stands for over the counter. It is a stock transaction between two people. If I have a stock, I can sell it OTC rather than through an exchange.
2007-01-28 11:31:11
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answer #2
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answered by johntindale 5
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2016-02-16 04:39:38
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answer #3
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answered by Anonymous
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It basically means the stock is not listed on the major exchanges like NYSE or NASDAQ. You'll have to get the stock from specialized broker, which could make it hard to trade.
2007-01-28 15:01:43
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answer #4
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answered by Anonymous
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2014-10-03 21:41:51
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answer #5
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answered by Anonymous
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