Over The Counter (OTC)
A market for securities that are not listed on an exchange. Security orders are transacted via telephone and a computer network that connect dealers. As opposed to the NYSE, which is an auction market, the OTC is a negotiated market. OTC dealers may either act either as principals or as agents for customers. The OTC market is regulated by FINRA. OTC stock prices are listed daily in newspapers, with the National Market System stocks listed separately from the rest of the OTC market. The OTC market is a main market for bonds.
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