What are OTC Markets?

OTC markets are off-exchange markets for broker-dealer networks that allow participants to buy and sell shares. There are two major exchanges in the U.S. There’s the New York Stock Exchange (NYSE) and the Nasdaq. You may have heard of the American Stock Exchange (AMEX).

What does OTCM stand for?

OTC Markets Group ( OTCM 1.23%) is the name of a company that operates a public market for securities that, for one reason or another, don't trade on major stock exchanges such as the NYSE and the Nasdaq. It also provides a real-time quotation service to market participants, known as OTC Link.

Are OTC stocks safe?

OTC markets are sometimes cast as the seedy underbelly of the stock market. If the major exchanges are a mall, the OTC markets are a foreign bazaar. There are dangers with all trading, but OTCs carry extra risk for the uninformed. So this guide is designed to help you understand OTC markets. What are OTC stocks? How do they trade?

Does OTCQX rebalance?

NEW YORK, Jan. 30, 2024 (GLOBE NEWSWIRE) -- OTC Markets Group Inc. (OTCQX: OTCM), operator of regulated financial markets for 12,000 U.S. and global securities, today announced the fourth quarter 2023 performance and quarterly rebalancing of the OTCQX® and OTCQB® indexes, including the OTCQX Canada Index and the OTCQX Dividend Index.