Over-the-counter (OTC)

Securities that trade over-the-counter (OTC) are not listed on an organized stock exchange, such as the New York Stock Exchange (NYSE) or the NASDAQ Stock Market.

Common stocks, corporate, government, and municipal bonds (munis), money market instruments, and other products, such as forward contracts and certain options, may trade OTC.

Generally speaking, the OTC market is a negotiated market conducted between brokers and dealers using telephone and computer networks.