Home Q-Tips What are OTC Markets, a simple breakdown of the microcap index.

What are OTC Markets, a simple breakdown of the microcap index.

More than 12,000 stocks trade Over the Counter

46
0
OTC Stocks

More than 12,000 stocks trade Over the Counter

What are OTC Markets? also known as Over the counter (OTC). OTC Markets are a stock exchange where stocks that aren’t listed on major exchanges such as the New York Stock Exchange (NYSE) can be traded.

The companies that issue these stocks choose to trade this way for a variety of reasons. These companies are typically seeking public funding, Reg A’s, crowdfunding, and possible diluted share structures. While others will seek less expensive forms of going public through mergers, reverse mergers, buyouts and SPAC’s (Special Purpose Acquisition Company).

Historically, the phrase trading over the counter referred to securities changing hands between two parties without the involvement of a stock exchange. However, in the U.S., over-the-counter trading is now conducted on separate exchanges

Best Market (OTCQX) – Only 4% of all OTC stocks listed are traded on this exchange.

Venture Market (OTCQB) – Middle tier where all companies must report their financials and submit to some oversight.

Pink Sheets – have no reporting requirements and don’t have to register with the Securities and Exchange Commission (SEC).

Gray Market – A gray market is an unofficial market for securities, and it is where stocks that are unlisted

 

OTC Markets logo © 2022 OTC Markets Group Inc

OTC Markets Group (previously known as Pink Sheets) is an American financial market providing price and liquidity information for over the counter (OTC) securities. The group has its headquarters in New York City. OTC-traded securities are organized into three markets to inform investors of opportunities and risks.

What are penny stocks? Penny stocks — also called microcap stocks — are high-risk shares of companies that have a low market capitalization and trade at a low price. Historically speaking, the term “penny stock” referred to stocks that traded for less than one dollar per share.

 

Check out our: OTC Market News Feed

 

stripes

Disclosure
This report represents our opinion, and we encourage every reader to do their own due diligence. Please see our full disclaimer

The company (TradersQue and all subsidiaries) and or staff and affiliates is not engaged, directly or indirectly, in buying or selling ahead of (“Front Running”) the articles, content, publications or in any connection to company’s and material events. TradersQue is not endorsed in promotions, all materials and content are self-sponsored.

 

TradersQue Main Logo

 

TradersQue Tools 

 

TradingView referral

 

Hi there 👋
It’s nice to meet you.
Don't miss our newsletter

Sign up to receive awesome content in your inbox, every month.

We don’t spam! Read our cookies privacy policy located in terms-and-conditions for more info.

Leave a Reply