What is OTC marketing?

OTC marketing refers to the market formed by buying and selling securities through a large number of decentralized securities counters and major telecommunications facilities of securities operating institutions such as investment banks. Sometimes called the over-the-counter or over-the-counter market, it forms another important part of the bond trading market. In terms of categories, the securities traded in the over-the-counter market are mainly government bonds, with stocks accounting for a small proportion.

Because these markets do not have centralized unified trading systems and venues, they are collectively called over-the-counter trading markets, also known as over-the-counter trading or over-the-counter trading markets, which refer to face-to-face price negotiations between securities buyers and sellers outside the exchange. transaction market. It does not have a fixed place, and its transactions are mainly carried out by telephone, telegraph, fax and computer network. The securities traded are mainly securities that are not listed on the exchange.

Extended information

Unique characteristics of OTC marketing:

(1) The OTC market is a decentralized invisible market. It does not have a fixed, centralized trading place, but is conducted by many independent securities operating institutions, and transactions are mainly completed by telephone, telegraph, fax and computer network.

(2) The OTC market is organized using a market maker system. The difference between the OTC market and the stock exchange is that there is no brokerage system, and investors trade directly with securities firms.

(3) The OTC market is a market with many types of securities and securities operating institutions, mainly stocks and bonds that have not been approved for listing on the stock exchange. Due to the wide variety of securities, each securities operating institution only operates a certain number of securities.

(4) The OTC market is a market where securities transactions are conducted through price negotiation.

Baidu Encyclopedia-OTC Market