What is an over -the -counter market?

Many people, although actively trading with shares, are aware of the main exchanges such as the New York Stock Exchange (NYSE), Nasdaq and London Stock Exchange (LSE). However, many companies do not trade on the main exchanges. Instead, their securities are offered on an over -the -counter market. On this type of market, stocks are traded over the phone, through facsimiles or an electronic network. Instead, items are traded for other media. Items traded on the idle market include government securities, corporate bonds and stock securities-ankcias that represent partial ownership of the company. Broker network of shops usually facilitates purchasing and sales orders of investors. From various reasons. The company sometimes does not meet the qualification on the list for the main exchange. Other times, securities are too sporadically traded or too volatile to be listed on one of the main exchanges.

two of the known forThe trading network options on the over -the -counter market are a counter plate (OTCBB) and pink leaves. OTCBB acts as an electronic citation system for brokers-traders and shows quotations in real time, prices and volume for some over-the-counter securities. It is regulated by the Regulatory Office of the Tax Industry (Finra), the Office of the United States Stock and Stock Exchange (SEC). In order to quote the securities on the STCBB, the Company must file the required reports with the SEC or with the regulatory body for its industry, such as insurance or banking.

pink leaves, published privately held pinksheets LLC, also operates an electronic citation system for retailers traders. However, pink leaves do not require companies to meet any list requirements. The company usually holds only a few shareholders and are relatively small. Shares are generally traded.

Many companies on the list of pink sheets describe no reports or financial statements with SEC. For this reasonIt is often difficult for the public to locate reliable or current information about companies. The name comes from pink paper, on which the quotations were printed for distribution to sellers. The warehouse symbol that trades on pink leaves always ends ".pk."

Some of the securities that trade on the over -the -counter market are known as Penny Stocks. The definition varies, but generally Penny shares are shares in a company that sells the main market exchanges at prices as low as a cent or less share, although some are sold for others. Penny supplies usually consider risk and speculative investment due to lack of regulatory supervision.