Over-the-counter (finance) - Wikipedia Over-the-counter (OTC) or off-exchange trading or pink sheet trading is done directly between two parties, without the supervision of an exchange It is contrasted with exchange trading, which occurs via exchanges A stock exchange has the benefit of facilitating liquidity, providing transparency, and maintaining the current market price In an
Over-the-Counter Markets: What They Are and How They Work OTC markets have a long history, dating back to the early days of stock trading in the 17th century Before the establishment of formal exchanges, most securities were traded over the counter
What is OTC? (Over-the-Counter) | Definition | Beginner’s Guide OTC (Over-the-Counter) is the process of stock trading directly between a dealer and a broker (a k a off-exchange trading) without the involvement of third parties (e g , exchange regulator) Dealers act as market makers by announcing the price for selling and buying stocks
Over-the-Counter (OTC) - Understand How OTC Trading Works "Off-exchange trading" accounted for around 16 percent of all stock transactions in the United States in 2008; by April 2014, that percentage had risen to about 40 percent Through direct negotiations, brokers and dealers set up such OTC markets
What is Off Exchange Trading Explained: Key Insights On exchange trading occurs on centralised platforms, such as stock exchanges or futures exchanges, while off-exchange trading takes place outside of these platforms Transparency: On exchange trading offers greater transparency due to the centralised nature of the platform and standardised trading rules