What is over-the-counter?

Over the counter or in short OTC is also known as unlisted. On this market the traded stocks didn’t meet the requirements of the stock exchange so they are traded here. This market is supervised by NASD. These securities are traded by brokers who are in direct connection with others and they communicate with each other by computers and phones. This securities are considered very risky because they were considered unstable or not large enough by the stock market. The trades are infrequent because they are only sold or bought if there’s somebody asking for them. And also the research is hard to obtain concerning these stocks.