National Quotation Bureau - NQB

Definition of 'National Quotation Bureau - NQB'


A company established in 1913 to compile and publish price information on stocks and bonds traded in the over-the-counter market. The National Quotation Bureau (NQB) was formed by financial book publisher Arthur F. Elliot and financier Roger Ward Babson. NQB was sold to Commerce Clearing House in 1963, which sold it in 1997 to a group of investors led by Cromwell Coulson. In 1999, the NQB introduced its real-time Electronic Quotation System for trading OTC securities, completing its transition from the print medium to the electronic one. The NQB was renamed Pink Sheets LLC in 2000, which in turn became Pink OTC in 2008. Eventually it changed the name to OTC Market Group in 2011.

Investopedia explains 'National Quotation Bureau - NQB'


The National Quotation Bureau was one of the prime originators of the ubiquitous “Pink Sheets", since it published stock information on pink paper and bond data on yellow sheets.
 
NQB’s roots date back to 1904, when Roger Babson – the founder of Babson College – founded a statistical organization that compiled and disseminated bond-offering circulars in a monthly publication to brokerage houses in New York, Boston, Chicago and other financial centers. Meanwhile, Arthur Elliot had started a firm in 1911 that daily compiled price and volume data from brokerage offices that were active in the over-the-counter (OTC) market. The two complementary services subsequently merged to form the NQB.
 
While it may be hard to appreciate the fact in the present era of free real-time quotes and instant information, the NQB provided a very valuable service more than a century ago by packaging scarce data and making it available to dealers and investors. In doing so, it also sidestepped the virtual monopoly that entities such as the New York Stock Exchange had on price data.
 
The reason for “Pink Sheets” becoming virtually synonymous with speculative OTC securities, despite its illustrious founders, is not clear. It may have been largely due to the preference over the years of most companies to be listed on an exchange – rather than trade OTC – because of the increased transparency and liquidity available on stock exchanges.
 



comments powered by Disqus
Hot Definitions
  1. Market Segmentation

    A marketing term referring to the aggregating of prospective buyers into groups (segments) that have common needs and will respond similarly to a marketing action. Market segmentation enables companies to target different categories of consumers who perceive the full value of certain products and services differently from one another.
  2. Effective Annual Interest Rate

    An investment's annual rate of interest when compounding occurs more often than once a year. Calculated as the following:
  3. Debit Spread

    Two options with different market prices that an investor trades on the same underlying security. The higher priced option is purchased and the lower premium option is sold - both at the same time. The higher the debit spread, the greater the initial cash outflow the investor will incur on the transaction.
  4. Odious Debt

    Money borrowed by one country from another country and then misappropriated by national rulers. A nation's debt becomes odious debt when government leaders use borrowed funds in ways that don't benefit or even oppress citizens. Some legal scholars argue that successor governments should not be held accountable for odious debt incurred by earlier regimes, but there is no consensus on how odious debt should actually be treated.
  5. Takeover

    A corporate action where an acquiring company makes a bid for an acquiree. If the target company is publicly traded, the acquiring company will make an offer for the outstanding shares.
  6. Harvest Strategy

    A strategy in which investment in a particular line of business is reduced or eliminated because the revenue brought in by additional investment would not warrant the expense. A harvest strategy is employed when a line of business is considered to be a cash cow, meaning that the brand is mature and is unlikely to grow if more investment is added.
Trading Center