Over the Counter (OTC)

Trading done directly between two parties.

Detailed Definition

Over-the-counter (OTC) refers to the process of how securities are traded for companies that are not listed on a formal exchange. Broker-dealers negotiate directly with one another over computer networks.

Related in General Trading

Volume

The number of shares or contracts traded.

Day Trading

Buying and selling assets within the same trading day.

Inflation

The rate at which the general level of prices is rising.