An Over Counter market is a network of companies that serve as a market maker for certain inexpensive and low-traded stocks. Stocks that trade on an exchange are listed stocks, whereas stocks sold over the counter are unlisted.
The OTC market is a decentralized market offering trading in almost all asset classes, like stocks, bonds, currency, and commodities. In addition, it may provide trading in financial derivatives.
Although there are differences between OTC and stock exchange, investors shouldn’t experience significant variations when trading. A stock exchange is a regulated, standardized market that could be considered safer as customers deal with the stock exchange through a member broker. Whereas in the OTC market, there is no centralized exchange.
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