The process of purchasing over-the-counter (OTC) stocks is different than purchasing stock from companies on the NYSE and the NASDAQ. The major difference is that OTC securities are unlisted, so there is no central exchange for the market. All orders of OTC securities must be made through market makers who, instead of just matching orders, actually carry an inventory of securities to facilitate trading.The first step an investor must make before they can trade in OTC securities is to open an account with a brokerage firm. Tags: over-the-counter,otc,pink sheets.,beginning investor,nasdaq,otc bulletin board
Posted: 9 years, 5 month(s) ago
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