National Quotation Bureau - NQB

AAA

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.
 

RELATED TERMS
  1. Dotcom Bubble

    An rapid rise in equity markets fueled by investments in internet-based ...
  2. Taiwan OTC Exchange (TWO) .TWO ...

    An alternative securities exchange in Taiwan with listing criteria ...
  3. Unlisted Security

    A financial instrument that is not traded on an exchange, but ...
  4. Over-The-Counter - OTC

    A security traded in some context other than on a formal exchange ...
  5. Over-The-Counter Bulletin Board ...

    A regulated electronic trading service offered by the National ...
  6. Penny Stock

    A stock that trades at a relatively low price and market capitalization, ...
Related Articles
  1. Investing Basics

    How To Play The OTC Pink Stocks

    The OTC Pink offers a variety of investment candidates including many good companies waiting to be discovered. Recently, the OTC Pink has worked hard to improve the service by tiering companies ...
  2. Investing

    The Over-The-Counter Market: An Introduction To Pink Sheets

    Being early to a party may not be hip, but being early on a rising stock certainly is.
  3. Investing Basics

    Analyst Recommendations: Do Sell Ratings Exist?

    Analyst reports can be an investor's best friend - but without knowing how to read them, you won't be able to fully utilize them.
  4. What is the impact of research on stock prices?
    Investing Basics

    What Is The Impact Of Research On Stock Prices?

    The answer to this question is directly related to the importance of information in the marketplace.
  5. Investing Basics

    OTCBB and OTC Markets Group

    The majority of larger companies that trade publicly choose to list their stocks on one of the major exchanges - the NYSE or Nasdaq. However, many companies are unable to meet the financial or ...
  6. Investing Basics

    Use Caution Trading Pink Sheet Stocks

    Pink Sheets stocks offer exciting opportunities to increase portfolio returns by large magnitudes in a short time. However, these opportunities come with significant risks. Investors need to ...
  7. Investing Basics

    The Lowdown On Penny Stocks

    Think penny stocks will make you rich? If you don't understand the risks, you could end up penniless.
  8. Options & Futures

    Fee-Based Research: The Good, The Bad And The Ugly

    Providing information on stocks that would otherwise not be available, fee-based research plays an important but complicated role in the market.
  9. Investing

    What does it mean when a stock trades on the Pink Sheets or the OTCBB?

    The stocks of well-known companies such as General Electric and Microsoft trade on major exchanges such as the New York Stock Exchange (NYSE) and Nasdaq. But companies like GE and Microsoft must ...
  10. Active Trading Fundamentals

    Can investors short sell pink sheet or over-the-counter stocks?

    Short selling is an effective trading strategy that can be employed to hedge the risk of a loss on an off-setting position or to speculate on an equity's price movement. In essence, short selling ...

You May Also Like

Hot Definitions
  1. Christmas Island Dollar

    The former currency of Christmas Island, an Australian island in the Indian Ocean that was discovered on December 25, 1643. ...
  2. Santa Claus Rally

    A surge in the price of stocks that often occurs in the week between Christmas and New Year's Day. There are numerous explanations ...
  3. Commodity

    1. A basic good used in commerce that is interchangeable with other commodities of the same type. Commodities are most often ...
  4. Deferred Revenue

    Advance payments or unearned revenue, recorded on the recipient's balance sheet as a liability, until the services have been ...
  5. Multinational Corporation - MNC

    A corporation that has its facilities and other assets in at least one country other than its home country. Such companies ...
  6. SWOT Analysis

    A tool that identifies the strengths, weaknesses, opportunities and threats of an organization. Specifically, SWOT is a basic, ...
Trading Center