Business Glossary

market for buying and selling securities not listed on organized stock exchanges. The OTC is typically a telephone market, with most business conducted by phone or, now, electronic device. Dealers, calledmarket makers, stand ready to buy or sell specific securities for their own accounts. These dealers will buy at a bid price and sell at an asked price that reflects the competitive market conditions. The OTC market is the largest of all markets in the United States in dollar terms.