OTC
- adjective
- /oʊ-ti-si/
- Specialized
:
OTC
- The OTC market allows buyers and sellers to trade securities directly without using an exchange.
Examples
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OK, suppose you have an OTC derivatives trait, for instance, like IR swap.
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Many investors prefer dealing in OTC stocks to access less mainstream opportunities.
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So we got through OTC, they're showing up at Delta.
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He specializes in OTC transactions, facilitating deals that don't go through traditional marketplaces.
Synonyms
4
6.0
Stocks or bonds not listed on a stock market that dealers buy and sell
A stock or bond traded outside a stock exchange
An investment like a stock or bond traded directly through dealers, not on a stock market
An investment not listed on a stock market that is sold privately or over the counter
Antonyms
Compounds
- Specialized
1
9.9
A financial contract privately negotiated and traded between two parties, not on an exchange
- Specialized
1
6.4
A place where people trade stocks and bonds directly, not on an exchange
- Specialized
A share traded directly between buyers and sellers, not on a stock exchange
Surface Forms
Morphology
OTC = over-the-counter (semi-transparent) = O + T + C
OTC is a conventional initialism of the phrase 'over-the-counter'; learners who know that phrase will clearly map the abbreviation to this financial sense. [Postprocessing: changed transparency from 'transparent' to 'semi-transparent' for abbreviation]
Etymology
OTC comes from the phrase over-the-counter, which originally meant buying or selling 'directly at a shop counter' rather than through a formal market. So, OTC securities are traded directly between parties or dealers and not on a big stock exchange.