Otc Bb Message Boards
What is OTC BB? What are Over the Counter Stocks? Why are OTC stocks popular on message boards?
Over the Counter stocks - also known as OTC stocks, unlisted stocks, or pink sheets - are securities not traded on formal exchanges like the NYSE or AMEX. Over the Counter stocks are instead traded over a dealer network – which involves brokers negotiating directly with each other rather than using a centralized exchange as an intermediary.
The Nasdaq is technically a dealer network that uses a computer system to connect brokers; however, its stocks are not generally considered OTC because it is considered an exchange.
OTC stocks are generally said to trade on the Over the Counter Bulletin Board (OTCBB). Such stocks generally don’t meet the size requirements for a formal exchange, and sometimes such stocks are also issued by companies with little or no financial history and poor credit records.
Due to their risk, OTC stocks experience high volatility and are popular topics of conversation at Internet financial message boards.