What is Over-the-Counter?
Definition of Over-the-Counter: Also referred as OTC this is used for explaining the transaction for a currency, financial instrument, security or any asset that cannot be handled over a prearranged exchange. Generally, the exchange involves the trading floor or the electronic trading stage that sends continuous transaction volumes with the cost information and check the continuing trade action. The stocks of OTC are likely to trade on the Bulletin Board of OTC or the Pink Sheet which is regarded as a division of NASDAQ. These problems involve several risks because of the lenient reporting needs and few supervisory mistakes by SEC. The computer that tackles the transactions can be referred as Over the Counter systems. The Forex market can be defined as a worldwide decentralized trading market. The financial centers located in different parts of the world play the role of revenues for the electronic interactions of the data among the purchasers and sellers. Without a federal organization, there is no procedure for calculating the trade volumes but the reporting agencies gather actual trade data from the participating purchasers and sellers to maintain a track of the cash movements which is known as OTC securities.