Over-the-counter (OTC) stocks are traded through a network of securities dealers, which is unlike the stocks that are traded on the NASDAQ exchange. However, trading of most OTC stocks is much more active than for stocks listed on the major exchanges.

Question

Quizplus · Accepted Answer

OTC stocks are indeed traded through a network of dealers, but trading of OTC stocks is generally less active compared to stocks listed on major exchanges like the NASDAQ or NYSE, which have higher liquidity and more stringent listing requirements.

Over-The-Counter (OTC) Stocks Are Traded Through a Network of Securities