"OTC" stands for Over-the-Counter, which is a trading method conducted outside the formal securities exchange. In the OTC market, trading parties directly engage in transactions through phone calls, electronic trading platforms, or other means, rather than through a public exchange.This means that the OTC market is more decentralized compared to traditional securities exchanges.The OTC market is typically suitable for smaller or less liquid securities that do not qualify for listing on mainstream exchanges. It also includes companies that do not meet the listing requirements of exchanges or foreign companies trading in the United States.For example:Let's assume there is a startup company called X Tech, which, due to its unstable business, does not meet the conditions for listing on a mains
100 Must-Know Finance Terms
Fundamental lexicon explained,Glossary for finance beginners.
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