ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -Over-the-counter (OTC) securities are those that are not listed on an exchange like the New York Stock Exchange (NYSE) or Nasdaq. Instead of trading on a centralized network, these stocks trade through a broker-dealer network.

Detailed explanation-2: -How do you buy OTC stocks? Because they trade like most other stocks, you can buy and sell OTC stocks through most major online brokers. In order to buy shares of an OTC stock, you’ll need to know the company’s ticker symbol and have enough money in your brokerage account to buy the desired number of shares.

Detailed explanation-3: -Over-the-counter stocks don’t trade on a regulated exchange such as the NYSE or the NASDAQ. In most cases, they’re trading OTC because they don’t meet the stringent listing requirements of the major stock exchanges.

Detailed explanation-4: -Although Nasdaq operates as a dealer network, Nasdaq stocks are generally not classified as OTC because Nasdaq is considered a stock exchange.

Detailed explanation-5: -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.