over-the-counter

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over-the-counter

over-the-counter, method of buying and selling securities outside the organized stock exchange. Unlike an organized stock exchange, the over-the-counter market is composed of dealers who negotiate most transactions by telephone and computer. For the most part, dealers purchase stocks for their own account and sell them to customers at a markup over wholesale prices. Over-the-counter trading represents the single largest securities market in the United States today; it includes almost all U.S. government securities and municipal and corporate bonds, as well as most commercial bank and insurance company stocks. Today, most over-the-counter dealing in the United States is done through an extensive computer network, called the National Association of Securities Dealers Automated Quotations (NASDAQ). In recent years, a number of companies that would be eligible for listing on the New York Stock Exchange have opted to remain in the over-the-counter market. In 1998, NASDAQ trading totalled $5.8 trillion, making it the second largest securities market in the world.
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References in periodicals archive ?
On the board, companies are required to trade their stocks always on full-cash delivery basis, a requirement specifically limited only to delisted companies according to the island's regulations governing over-the-counter market.
Halifax has filed a request with the Securities and Exchange Commission (SEC) to cease trading on the over-the-counter market.
"J&J's share of the Canadian over-the-counter market essentially doubled with the Pfizer acquisition, widening its lead on the next closest competitor, Wyeth, by more than $300 million [Canadian]," says Laura Mahecha, industry manager of the health care practice at Kline & Co., which has released a new report on nonprescription drugs in Canada.
"We are excited about the opportunity to grow our market share and increase our scale in the store brand over-the-counter market," comments Leiner president Gale Bensussen.
Nippon Herald will thereby be delisted from the Jasdaq over-the-counter market on July 27, it said.
According to the order issued by Dodson, there is some indication that the company's common stock -- being sold under the symbol AWTX on the Nasdaq bulletin board over-the-counter market -- was being sold to Arkansas residents by numerous broker-dealers and agents under the belief that the shares were exempt from state registration.
Young says that by making the stock available on the over-the-counter market, "Our shareholders are able to benefit from a strong and robust market, and it is now easier for them to buy or sell stock."
Oracle Japan Corp's shares saw their first action Friday when they debuted on the over-the-counter market and jumped 72.8%.
Shares of Grossman's, which filed for Chapter 11 protection in April, were delisted from the Nasdaq over-the-counter market on July 23.
With this technique, a freestanding corporation (SPARC) makes an initial public offering of its stock, which is subsequently traded on one of the exchanges or on the over-the-counter market. The entity goes public by means of the SWORD.
Some derivative products, such as options on securities, can be standardized products traded on options exchanges; others, such as currency and interest rate swaps, often are customized to suit the needs of individual end users, and purchased and sold in the over-the-counter market.
"Following the delisting, the company anticipates that its common stock will be eligible to be quoted on the over-the-counter market, but no assurance can be made that trading in the company's common stock on the over-the-counter market will commence or be maintained," Fusion said.