OTC (Over-the-Counter)

Trading in securities that occurs directly between parties outside of a formal stock exchange, typically facilitated by dealer networks. The US OTC market operates across three tiers: OTCID (for companies in early disclosure stages), OTCQB (the venture market for early-stage and development-stage US and international companies), and OTCQX (the top tier for established, investor-focused companies that meet higher financial and governance standards). OTC markets are common venues for smaller companies, foreign private issuers, and companies not yet meeting major exchange listing standards.