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The counter (OTC) |
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The counter (OTC)A decentralized market (as opposed to an exchange market) where geographically dispersed dealers are linked by telephones and computer screens. The market is for securities not listed on a stock or bond exchange. The NASDAQ market is an OTC market for US stocks. Antithesis of listed.The counter (OTC) Similar MatchesOver the Counter OptionOver the Counter OptionAn option traded off-exchange, as opposed to a listed stock option. The OTC option has a direct link between buyer and seller, has no secondary market, and has no standardization of striking prices and expiration dates. See also Secondary Market. Over the counterOver the counterA stock or share that is not traded on a listed exchange, but which is traded between dealers by telephone and computer. OTC stocks tend to be those of companies that do not meet the listing requirements of an exchange, although some companies that do meet the listing requirements choose to remain as OTC stocks. In the US, the rules for trading OTC stocks are enforced by the National Association of Securities Dealers (NASD). Counterparty riskCounterparty riskThe risk that the other party to an agreement will default. In an options contract, the risk to the option buyer that the option writer will not buy or sell the underlying as agreed. CounterpurchaseCounterpurchaseExchange of goods between two parties under two distinct contracts expressed in monetary terms. Counter tradeCounter tradeThe exchange of goods for other goods rather than for cash; barter. Further SuggestionsCountertradeCounterparty Receive floating counterparty Counterpart items Countercyclical stocks Hit counter Counterparties Countervailing duty Counter cheque Receive fixed counterparty |
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