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Glite Dictionary
over the counter security

over the counter security

6.7
An investment like a stock or bond traded directly through dealers, not on a stock market
  • noun
  • Specialized
translation icon : valor no cotizado
  • Unlike listed shares, over the counter securities are traded through networks of dealers.

Examples

  • Many small companies raise capital by issuing over the counter securities rather than seeking a stock exchange listing.

  • Investors often trade over the counter securities for better prices.

  • Investors should research the risks before buying over the counter security offerings.

  • The over the counter security market offers various options for traders.

  • Many small companies opt to issue over the counter security to access funding more easily.

  • Investors may choose over the counter security for its potential to offer better liquidity than some exchange-listed options.

  • Trading over the counter security can be riskier, so investors should do thorough research beforehand.

Synonyms

OTC security
vsover the counter security
  • Specialized
7.7

A stock or bond traded outside a stock exchange

is the full phrase written in complete words instead of the abbreviation
unlisted security
vsover the counter security
  • Specialized
8.1

An investment not listed on a stock market that is sold privately or over the counter

focuses on direct trading between parties via dealer networks rather than listing

Antonyms

exchange
  • Specialized
191 5.8

A place where people buy and sell stocks

How Public

listed security
  • Specialized
6.0
over the counter security
  • Specialized
6.7
unlisted security
  • Specialized
8.1

Surface Forms

over the counter security singular
over the counter securities plural

Morphology

over + the + counter + security

The phrase extends the literal idea of dealing across a physical counter to a specialised financial sense of direct, off-exchange trading. A B1 learner who knows 'over' and 'counter' may infer a notion of directness, but the specific meaning 'not traded on a formal exchange' is a metaphorical, domain-specific extension and not fully predictable without prior exposure.

Etymology

Over the counter security comes from the image of buying something over the counter in a shop, where you take it directly from the seller instead of going through a public 'exchange'. That's why it means a security sold directly between people rather than on a public market.