Stock Alarm Logo
OTC Market logo

OTC Market securities

The Over-the-Counter (OTC) market refers to a decentralized market where securities are traded directly between two parties, rather than on a formal exchange. OTC markets are also known as "off-exchange" trading. These markets are not regulated by any central authority, and they are often used for trading securities that are not listed on a formal exchange, such as penny stocks or bonds issued by smaller companies.