THE BEECHMONT CREST ONLINE GUIDE TO STOCKS AND INVESTING
OVER-THE COUNTER-MARKET (OTC)
The OTC is not a single market, but rather a network of brokers. These brokers number in the hundreds in the United States. They are connected a computer network.
In order to become a member of the OTC, a broker (or dealer) must meet the following requirements:
-Be registered with the Securities and Exchange Commission (SEC).
- Belong to the National Association of Securities Dealers (NASD)
- Meet minimal capital requirements (set by the NASD)
The most important marketplaces for OTC stocks are:
- NASDAQ
- Instinet
- Archipelago