http://www.1mtx.com/markets-trades/en/index.php?language=en&menu=TRADES&punkt=Floor_Trading&punkt2=Floor%20/%20OTC%20Trading&index=OTC%20Trading#Floor%20/%20OTC%20TradingOTC%20Trading Trades on the floor of the New York Stock Exchange always involve a face-to-face interaction. There is one podium/desk on the trading floor for each of the exchange's three thousand or so stocks. Floor/OTC : OTC Trading OTC (Over-The-Counter) trading is to trade financial instruments such as stocks, bonds, commodities or derivatives directly between two parties. OTC OTC Bulletin Board (OTCBB) Pink Sheets OTCQX ...more Links ! ...| Reports | Analysis | Opinions | Comments |... ...Take a Break...Just Relax... In the U.S.A., over-the-counter trading in stocks is carried out via market makers who use quotation services such as the OTC Bulletin Board (OTCBB) and the Pink Sheets. Latest Updates... Commodities/Derivatives List OTC Contracts : IntercontinentalExchange ICE Stocks Daily Statistics : OTC Bulletin Board Pink Sheets Latest Updates... The US over-the-counter market is monitored by the NASD. Because such trades are not traded on any major stock exchange and there is less research done on them in the financial market, they are considered to be risky. As there is very infrequent trading in such a market, the spread (which is the difference between the bid price and ask price) is large. OTC (Over-The-Counter) Over-the-counter (OTC) trading is to trade financial instruments such as stocks, bonds, commodities or derivatives directly between two parties. It is contrasted with exchange trading, which occurs via facilities constructed for the purpose of trading (i.e., exchanges), such as futures exchanges or stock exchanges. An over-the-counter contract is a bilateral contract in which two parties agree on how a particular trade or agreement is to be settled in the future. It is usually from an investment bank to its clients directly. Forwards and swaps are prime examples of such contracts. It is mostly done via the computer or the telephone. For derivatives, these agreements are usually governed by an International Swaps and Derivatives Association (ISDA) agreement. This segment of the OTC market is occasionally referred to as the "Fourth Market." The NYMEX (The New York Mercantile Exchange NYMEX - part of the CME Group - is the world's largest physical commodity futures exchange, located in New York City) has created a clearing mechanism for a slate of commonly traded OTC energy derivatives which allows counterparties of many bilateral OTC transactions to mutually agree to transfer the trade to ClearPort, the exchange's clearing house, thus eliminating credit and performance risk of the initial OTC transaction counterparts. The IntercontinentalExchange (ICE - an American financial company that operates Internet-based marketplaces) is also trading futures and over-the-counter (OTC) energy and commodity contracts as well as derivative financial products. ICE OTC Markets (All Contracts Available on ICE OTC; Energy - CDS - TheICE.com -website) OTC OTC Bulletin Board (OTCBB) Pink Sheets OTCQX ...more Links ! ...| Reports | Analysis | Opinions | Comments |... ...Take a Break...Just Relax... ^ top OTC Bulletin Board (OTCBB) The OTC Bulletin Board (or OTCBB) is an electronic quotation system in the United States that displays real-time quotes, last-sale prices, and volume information for many over-the-counter (OTC) equity securities that are not listed on the Nasdaq Stock Market or a national securities exchange. Broker-dealers who subscribe to the system can use the OTCBB to look up prices or enter quotes for OTC securities. The US over-the-counter market is monitored by the NASD (National Association of Securities Dealers). Because such trades are not traded on any major stock exchange and there is less research done on them in the financial market, they are considered to be risky. As there is very infrequent trading in such a market, the spread (which is the difference between the bid price and ask price) is large. Although the NASD oversees the OTCBB, the OTCBB is not part of the Nasdaq Stock Market. According to the SEC, fraudsters often claim or imply that an OTCBB company is a Nasdaq company to mislead investors into thinking that the company is bigger than it is. Companies quoted on the OTC Bulletin Board must be fully reporting (i.e. current with all required SEC filings) but have no market capitalization, minimum share price, Corporate governance or other requirements to be quoted. Companies which have been "de-listed" from stock exchanges for falling below minimum capitalization, minimum share price or other requirements often end up being quoted on the OTC Bulletin Board. Stock of non reporting companies (those without current SEC filings) may be quoted in the Pink Sheets. Most OTCBB companies are dually quoted, meaning they are quoted on both the OTCBB and the Pink Sheets. Stocks traded in OTC markets such as the OTCBB or Pink Sheets are usually thinly traded microcap or penny stocks and are avoided by many investors due to a well-founded fear that share prices are easily manipulated. The SEC issues stern warnings to investors to beware of common fraud and manipulation schemes. Microcap Stock: A Guide for Investors put out by the SEC is highly recommended reading for investors considering buying stock in the OTC market. more (Where Do Microcap Stocks Trade? - How Are Microcap Stocks Different From Other Stocks? - Risks - The Classic "Pump and Dump" Scheme, more... SEC.gov) OTC OTC Bulletin Board (OTCBB) Pink Sheets OTCQX ...more Links ! ...| Reports | Analysis | Opinions | Comments |... ...Take a Break...Just Relax... ^ top Pink Sheets The Pink Sheets is an electronic quotation system that displays quotes from broker-dealers for many over-the-counter (OTC-traded) securities. Market makers and other brokers who buy and sell OTC securities, can use the Pink Sheets to publish their bid and ask quotation prices. The name "Pink Sheets" comes from the color of paper the quotes were historically printed on prior to the electronic system. They are published today by Pink Sheets LLC, a privately owned company. Pink Sheets LLC is neither a NASD broker-dealer nor registered with the U.S. Securities and Exchange Commission; it is not a stock exchange. To be quoted in the Pink Sheets companies do not need to fulfill any requirements (e.g. filing financial statements with the SEC). With the exception of a few foreign issuers (mostly represented by American Depositary Receipts, or ADRs), the companies quoted in the Pink Sheets tend to be closely held, extremely small, or thinly traded. Most do not meet the minimum listing requirements for trading on a stock exchange such as the New York Stock Exchange. Many of these companies do not file periodic reports or audited financial statements with the SEC, making it very difficult for investors to find reliable, unbiased information about those companies. For these reasons the SEC views companies listed on Pink Sheets as "among the most risky investments" and advises potential investors to heavily research the companies in which they plan to invest. Buying Pink Sheets shares is supposed to be difficult. Broker-dealers are enjoined to weed-out unsophisticated investors who may get an e-mail or word-of-mouth tip about a small stock. Many Pink Sheets stocks may only be registered for sale in one state so that the only way to purchase the stock is to make a DRIP/business/unsolicited/accredited or other sophisticated form of investment. Many registered representatives do not even know how or if they can sell them. more (Premium Market Tier - Disclosure Categories) Pink Sheets Categories (Pinksheets.com) OTC OTC Bulletin Board (OTCBB) Pink Sheets OTCQX ...more Links ! ...| Reports | Analysis | Opinions | Comments |... ...Take a Break...Just Relax... ^ top OTCQX OTCQX is a premium market tier offered by Pink Sheets LLC that aims to raise the visibility of OTC-traded companies that, although not traded on a stock exchange, have operating businesses and provide substantial disclosure to the marketplace via Pink Sheets, LLC. Unlike most companies quoted on the Pink Sheets, OTCQX companies must provide audited financials and certain disclosures to Pink Sheets LLC but are not required to be fully SEC reporting companies (i.e. current with all SEC filings). OTCQX Website (OTCQX.com) Company List (OTCQX.com) OTC OTC Bulletin Board (OTCBB) Pink Sheets OTCQX ...more Links ! ...| Reports | Analysis | Opinions | Comments |... ...Take a Break...Just Relax... ^ top ...more Links ! ...more Links Over-the-Counter Markets (SEC.gov) '...Under the OTCBB's eligibility rule, companies that want to have their securities quoted on the OTCBB must file current financial reports with the SEC or with their banking or insurance regulators....' OTC Bulletin Board (OTCBB) Eligibility Rule (SEC.gov) '...The OTC Bulletin Board (OTCBB) eligibility rule required companies whose securities were quoted on the OTCBB to file updated financial reports with the SEC or with their banking or insurance regulators. If these companies failed to file current financial reports, their securities would be removed from the OTCBB, but could be quoted in another system, such as the Pink Sheets. ...' Pump and dump (wikipedia) '...Pump and dump schemes, involving use of false or misleading statements to hype stocks, which are "dumped" on the public at inflated prices. Such schemes involve telemarketing and Internet fraud...' Pump&Dump (SEC.gov) '..One of the most common Internet frauds involves the classic "pump and dump" scheme. Here's how it works: A company's web site may feature a glowing press release about its financial health or some new product or innovation. Newsletters that purport to offer unbiased recommendations may suddenly tout the company as the latest "hot" stock. Messages in chat rooms and bulletin board postings may urge you to buy the stock quickly or to sell before the price goes down. Or you may even hear the company mentioned by a radio or TV analyst. ...' STOCKS GLOSSARY A - Z Terms - Definitions - Exchanges TRADES GLOSSARY A - Z Terms - Definitions OTC OTC Bulletin Board (OTCBB) Pink Sheets OTCQX ...more Links ! ...| Reports | Analysis | Opinions | Comments |... ...Take a Break...Just Relax... ^ top ...| Reports | Analysis | Opinions | Comments |... | Reports | Analysis | Opinions | Comments | 'A typical pump and dump scenario' "Pump and dump schemes tend to take place either on the Internet including e-mail spam campaigns or through telemarketing from "boiler room" brokerage houses (for example, see Boiler Room (film)). Often the stock promoter will claim to have "inside" information about impending news. Newsletters that purport to offer unbiased recommendations then tout the company as a "hot" stock. Messages in chat rooms and email spam urge readers to buy the stock quickly. ..." Read more (wikipedia) 'Pink-sheet primer' " Seeking out foreign stocks unlisted on U.S. exchanges LOS ANGELES (MarketWatch) -- U.S. investors can tap into a wider variety of foreign stocks than ever before, but to do so they often have to leave the traditional exchanges behind. Investors are most familiar with American Depositary Receipts that trade on the New York Stock Exchange, the American Stock Exchange and the Nasdaq -- companies like Nokia OYJ or BP PLC. But an even deeper pool of foreign stocks exists in the pink sheets, also known as over-the-counter (OTC) markets -- a negotiated market where stocks aren't listed on an exchange. According to the Bank of New York, a depositary bank for ADRs, there are 489 U.S. exchange-listed ADRs and 899 pink sheets. ..." Read more (By Barbara Kollmeyer, Jan. 31, 2006 - MarketWatch.com) OTC OTC Bulletin Board (OTCBB) Pink Sheets OTCQX ...more Links ! ...| Reports | Analysis | Opinions | Comments |... ...Take a Break...Just Relax... ^ top New York City Pink Sheets LLC is headquartered in New York City Take a break... ...Take a Break...Just Relax... Hot Girl washing Car OTCBB: SPNG ...just relax... TOTC (Over-The-Counter) trading is to trade financial instruments such as stocks, bonds, commodities or derivatives directly between two parties. OTC (Over-The-Counter) trading is to trade financial instruments such as stocks, bonds, commodities or derivatives directly between two parties. ADVERTISEMENT OTC OTC Bulletin Board (OTCBB) Pink Sheets OTCQX ...more Links ! ...| Reports | Analysis | Opinions | Comments |... ...Take a Break...Just Relax... ^ top Sources: Wikipedia; MarketWatch.com; SEC.gov; .1MTX 2008
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