Over-the-Counter Markets

An over-the-counter (OTC) market is a type of market where people trade securities directly without going through a middleman like a broker. This is done electronically and doesn't have a physical location. Continue Reading Below

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About Over-the-Counter Markets

An over-the-counter (OTC) market is a type of market where people trade securities directly without going through a middleman like a broker. This is done electronically and doesn't have a physical location. Some smaller or riskier stocks are traded this way, but most stocks are traded on big exchanges. There are also some financial markets that only trade in OTC markets, but these markets are generally less regulated, not as easy to buy and sell in (less liquid), and harder to understand what's going on (more opaque).