Over The Counter Stocks

Nick Name

Penny Stocks

Abbreviation

OTC

Over the Counter (OTC) stocks are stocks that trade through dealer networks instead of on a traditional exchanged.

Entities

	Allied Capital Corporation
	The Stock Dork

Entity Types

Terms

OTC stocks don't have to publish balance sheets and other financial reports like stocks traded on exchanges do
Originally prices were published only in the Pink Sheets by the National Quotation Bureau

Debt securities and other financial instruments such as derivatives are also traded over the counter
Typically trader for less than $5 per share
Sometimes considered to the "Wild West" of stocks

Terms