OTC Bulletin Board

Introduction

The OTC Bulletin Board (OTCBB) is a regulated quotation service for equities sold on the US over-the-counter (OTC) market. It provides real-time quotes and last-sale prices for stocks that are not listed on one of the major US exchanges. The OTCBB was created by the National Association of Securities Dealers Inc. (NASD) in 1990 to enhance transparency and provide investors with essential trading information.

Key Features

• Regulated Quotation Service: The OTCBB is overseen by the Financial Industry Regulatory Authority (FINRA), which ensures compliance with regulations and standards.
• Real-time Quotes: It provides real-time bid and ask prices, allowing investors to make informed decisions.
• Last-Sale Prices: OTCBB displays the most recent transaction prices, offering insight into market trends.
• Securities Eligibility: Only companies that file timely financial reports with the SEC or other regulatory bodies can be quoted on the OTCBB.

Related Terms

• Over-the-Counter (OTC) Market: A decentralized market where securities not listed on major exchanges are traded.
• FINRA: Financial Industry Regulatory Authority, which regulates member brokerage firms and exchange markets.
• NASDAQ: National Association of Securities Dealers Automated Quotations, a major US stock exchange.

FAQs

• What is the OTC Bulletin Board (OTCBB)?

  • The OTCBB is a regulated quotation service for trading equities not listed on major US exchanges.

• How does the OTCBB differ from other markets?

  • Unlike major exchanges, the OTCBB offers real-time quotes for smaller, often less-regulated companies.

• What are the risks of investing in OTCBB stocks?

  • Higher risk and lower liquidity compared to stocks on major exchanges.