Level 2

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DEFINITION of 'Level 2'

A trading service consisting of real-time access to the quotations of individual market makers registered in every Nasdaq listed security, as well as market makers' quotes in OTC Bulletin Board securities.

INVESTOPEDIA EXPLAINS 'Level 2'

This allows you to watch the trades being executed right in front of you. Also known as Level II.

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  5. What is a "pink sheet" in the context of an OTC (over-the-counter) transaction?

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