Over-The-Counter Bulletin Board - OTCBB

Filed Under » , , ,
Dictionary Says

Definition of 'Over-The-Counter Bulletin Board - OTCBB'

A regulated electronic trading service offered by the National Association of Securities Dealers (NASD) that shows real-time quotes, last-sale prices and volume information for over-the-counter (OTC) equity securities. Companies listed on this exchange are required to file current financial statements with the SEC or a banking or insurance regulator. There are no listing requirements, such as those found on the Nasdaq and New York Stock Exchange, for a company to start trading on the OTCBB.

Stocks that trade on the OTCBB, will have the suffix ".OB".
Investopedia Says

Investopedia explains 'Over-The-Counter Bulletin Board - OTCBB'

It is important to note that companies listed on the OTCBB are not a part of the Nasdaq Exchange. The truth is, OTCBB stocks are not especially large or stable and are considered very risky. As a result, very few OTCBB stocks are successful in making the jump from this market to the Nasdaq or any other major exchange because they are unable to meet the listing requirements. Furthermore, because OTCBB stocks tend to trade infrequently, the bid-ask spread is larger.

Related Definitions

  •

    Delisting

    The removal of a listed security from the exchange on which it trades. Stock is removed from an exchange because the company for which the stock is issued, whether voluntarily or ...
    Read More »

  • Micro Cap

    A publicly traded company in the United States that has a market capitalization between approximately $50 million and $300 million. Micro-cap companies have greater market capitalization ...
    Read More »

  • National Association Of Securities Dealers - NASD

    The NASD was a self-regulatory organization of the securities industry responsible for the operation and regulation of the Nasdaq stock market and over-the-counter markets. It also ...
    Read More »

    • Nasdaq

      A computerized system that facilitates trading and provides price quotations on more than 5,000 of the more actively traded over the counter stocks. Created in 1971, the Nasdaq was the ...
      Read More »

    • Over-The-Counter - OTC

      A security traded in some context other than on a formal exchange such as the NYSE, TSX, AMEX, etc. The phrase "over-the-counter" can be used to refer to stocks that trade via a dealer ...
      Read More »

    • Bid-Ask Spread

      The amount by which the ask price exceeds the bid. This is essentially the difference in price between the highest price that a buyer is willing to pay for an asset and the lowest price ...
      Read More »

    • Unlisted Security

      A security that is not traded on an exchange, usually because of an inability to meet listing requirements.
      Read More »

    • Over-The-Counter Market

      A decentralized market of securities not listed on an exchange where market participants trade over the telephone, facsimile or electronic network instead of a physical trading floor. ...
      Read More »

    • Direct Participation Program - DPP

      A business venture designed to let investors participate directly in the cash flow and tax benefits of the underlying investment. DPPs are generally passive investments that invest in ...
      Read More »

    • American Depositary Receipt - ADR

      A negotiable certificate issued by a U.S. bank representing a specified number of shares (or one share) in a foreign stock that is traded on a U.S. exchange. ADRs are denominated in U.S. ...
      Read More »

Articles Of Interest

Sponsored links
Hot Definitions
Partner Links
Suggested Definitions