When stocks are traded via a dealer network as opposed to on a centralized exchange, what is the deal called?
A)A futures contract.
B)A swap contract.
C)An option contract.
D)An over-the-counter contract.

Question

Quizplus · Accepted Answer

This type of deal is called an over-the-counter (OTC) contract.
Key Takeaway: Generally, small companies choose to trade stocks over the counter because they are unable to meet exchange listing requirements. These stocks are traded in an informal exchange rather than on a formal exchange such as the NYSE, TSX, AMEX, etc.

When Stocks Are Traded Via a Dealer Network as Opposed