What are OTC stocks?
Updated over a week ago

Over-the-counter (OTC) stocks are securities that are traded through a broker-dealer network and do not trade on a centralized exchange like the NYSE or Nasdaq. Being listed on a major exchange often requires certain financial or reporting standards that many companies do not or can not meet, so by listing OTC, these companies can access the capital markets with much fewer restrictions and oversight. While this can be good for both the companies and investors, it also comes with much greater risk since there are fewer investor protections in place - investors have to be very careful when considering whether to invest in OTC securities because they can come with many unique risks.

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