Over-The-Counter Market
/ˌoʊvər ði ˈkaʊntər ˈmɑrkɪt/
Definitions
- (n.) A decentralized market for trading securities directly between parties without a centralized exchange.
Many small-cap stocks are frequently traded on the over-the-counter market.
Forms
- over-the-counter market
- over-the-counter markets
Related terms
See also
Commentary
Usually involves less regulation and transparency than exchange-traded markets; important to specify the nature of securities and participants involved when drafting.
This glossary is for general informational and educational purposes only. Definitions are jurisdiction-agnostic but reflect terminology and concepts primarily drawn from English and American legal traditions. Nothing herein constitutes legal advice or creates a lawyer-client relationship. Users should consult qualified counsel for advice on specific matters or jurisdictions.