ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -Stocks that trade via OTC are commonly smaller companies that cannot meet the exchange listing requirements of formal exchanges. Many other types of securities also trade OTC. Stocks that trade on exchanges are called listed stocks, whereas stocks that trade via OTC are called unlisted stocks.

Detailed explanation-2: -Over-the-counter (OTC) securities are securities that are not listed on a major exchange in the United States and are instead traded via a broker-dealer network, usually because many are smaller companies and do not meet the requirements to be listed on a formal exchange.

Detailed explanation-3: -An example of OTC trading is a share, currency, or other nancial instrument being bought through a dealer, either by telephone or electronically. Business is typically conducted by telephone, email and dedicated computer networks. Get tight spreads, no hidden fees and access to 11, 500 instruments.

Detailed explanation-4: -The OTC Markets Group platform is segregated into 3 distinct market tiers: the OTCQX, the OTCQB, and the Pink. Each of these different tiers is separated based on perceived risk levels, which depend on the quality and regularity of a listed company’s reporting information and disclosures.

Detailed explanation-5: -The over-the-counter market refers to securities trading that takes place outside of the major exchanges. There are more than 12, 000 securities traded on the OTC market, including stocks, exchange-traded funds (ETFs), bonds, commodities and derivatives.