What does over-the-counter market mean?

Definitions for over-the-counter market
over-the-counter mar·ket

This dictionary definitions page includes all the possible meanings, example usage and translations of the word over-the-counter market.

Princeton's WordNet

  1. over-the-counter market, OTC marketnoun

    a stock exchange where securities transactions are made via telephone and computer rather than on the floor of an exchange

Wikipedia

  1. over-the-counter market

    Over-the-counter (OTC) or off-exchange trading or pink sheet trading is done directly between two parties, without the supervision of an exchange. It is contrasted with exchange trading, which occurs via exchanges. A stock exchange has the benefit of facilitating liquidity, providing transparency, and maintaining the current market price. In an OTC trade, the price is not necessarily publicly disclosed. OTC trading, as well as exchange trading, occurs with commodities, financial instruments (including stocks), and derivatives of such products. Products traded on traditional stock exchanges, and other regulated bourse platforms, must be well standardized. This means that exchanged deliverables match a narrow range of quantity, quality, and identity which is defined by the exchange and identical to all transactions of that product. This is necessary for there to be transparency in stock exchange-based equities trading. The OTC market does not have this limitation. Parties may agree on an unusual quantity, for example. In OTC, market contracts are bilateral (i.e. the contract is only between two parties), and each party could have credit risk concerns with respect to the other party. The OTC derivative market is significant in some asset classes: interest rate, foreign exchange, stocks, and commodities.In 2008 approximately 16 percent of all U.S. stock trades were "off-exchange trading"; by April 2014 that number increased to about 40 percent. Although the notional amount outstanding of OTC derivatives in late 2012 had declined 3.3% over the previous year, the volume of cleared transactions at the end of 2012 totalled US$346.4 trillion. "The Bank for International Settlements statistics on OTC derivatives markets showed that notional amounts outstanding totalled $693 trillion at the end of June 2013... The gross market value of OTC derivatives – that is, the cost of replacing all outstanding contracts at current market prices – declined between end-2012 and end-June 2013, from $25 trillion to $20 trillion."

ChatGPT

  1. over-the-counter market

    The over-the-counter (OTC) market is a decentralized market where securities, commodities, derivatives, or other financial instruments are traded directly between two parties, without a central exchange or broker. This type of trading can occur via email, telephone, or proprietary electronic trading systems. The OTC market allows for the trade of unlisted securities that are not traded on formal exchanges due to their inability to meet listing requirements. These securities are often issued by smaller or newer companies, but it can also include derivatives and bonds. Price transparency and regulation in the OTC market can be less stringent than formal exchanges.

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Numerology

  1. Chaldean Numerology

    The numerical value of over-the-counter market in Chaldean Numerology is: 3

  2. Pythagorean Numerology

    The numerical value of over-the-counter market in Pythagorean Numerology is: 5


Translations for over-the-counter market

From our Multilingual Translation Dictionary

  • рынок ценных бумаг, продающихся по телефону или через компьютерную сетьRussian

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"over-the-counter market." Definitions.net. STANDS4 LLC, 2024. Web. 23 Apr. 2024. <https://www.definitions.net/definition/over-the-counter+market>.

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