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Over-The-Counter Stocks

Stock market Over-The-CounterOver-the-Counter-Market

Over-the-Counter Stocks: Stocks that are not listed and do not trade on an organized exchange, such as the NYSE or the AMEX. They are usually small-cap companies that do not meet the exchange requirements.

 


penny stocks - over-the-counter stocks that trade for (usually) less than $3/share. Quotes are entered by dealers who act as market makers and are printed on "Pink Sheets" (hence the name) by the National Quotation Bureau.

National Market System The trading system for over-the-counter stocks under the sponsorship of NASD and Nasdaq. National Securities Clearing Corporation Abbreviated as NSCC, refers to the securities clearing organization owned jointly...

Daily printed listings containing quotations for thousands of over-the-counter stocks that are not listed on any of the major stock markets. These quotations are entered by dealers acting as Market Makers in the individual securities.

Pink Sheet stocks are over-the-counter stocks that do not have as much trading as NASDAQ stocks or Over-the-Counter Bulletin Board stocks, since many of them are penny stocks, in bankruptcy, or closely held public companies with relatively few shares.

On over-the-counter stocks, the best ask is considered the best price quoted which the Market Maker, investor or dealer, will sell the stock for. On mutual funds a best ask is the sales charge plus net asset value.

OTC: Acronym for Over-The-Counter stocks. These are stocks that are not traded on a national securities Exchange.
Overbought: When market prices ascend too steeply at a rapid rate, it is said to be overbought.

Printed on pink paper, the Pink Sheets are a daily listing of the prices of over-the-counter stocks published by the National Quotation Bureau. Companies listed on the pink sheets do not need to meet minimum requirements or file with the SEC. .

Only equity securities are considered for investment, whether they be listed stocks, over-the-counter stocks, or private equity shares.

investors who lost money buying low-priced, thinly traded over-the-counter stocks and who seek to recover their losses. This brochure describes how some of these scams work, provides tips on how to avoid them, and tells you where to find help.

Pink sheets
The printed quotations of the bid and ask prices of over-the-counter stocks, published by National Quotation Bureau.
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OTC Bulletin Board
An electronic service that provides selected quotes on over-the-counter stocks.

1) The firm's headquarters are based in the U.S.
2) The stock is actively traded on a U.S. exchange.
3) The stock has widely available pricing information (this disqualifies bulletin board, or over-the-counter stocks).

While a strategy of buying under valued companies the S&P 500 and holding for the long term should not be affected very much by the bid-ask spread, a strategy of buying small over-the-counter stocks or emerging market stocks on information, ...

Created in 1971, the Nasdaq was the world's first electronic stock market. The Nasdaq is a computerized system that facilitates trading and provides price quotations on some 5,000 of the more actively traded over-the-counter stocks.

NASDAQ: Stands for the National Association of Securities Dealers Automated Quotation System. A nationwide computerized quotation system for current bid and asked quotations on over 5,500 over-the-counter stocks.
Negative Yield Curve: See Yield Curve.

See also: Stock, Over-The-Counter, Market, Exchange, Securities

Stock market Over-The-CounterOver-the-Counter-Market

 
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