Why are some stocks exchanged over the counter?
A)Lower start-up cost for the company
B)Lower trading cost for the company
C)Company is too small to meet the requirements of the exchange
D)Company has not been in business long enough to be accepted in the exchange

Question

Quizplus · Accepted Answer

Companies that are too small or do not meet the listing requirements of the major stock exchanges will trade over the counter (OTC). This can be due to factors such as low market capitalization, limited trading volume, or not meeting the financial standards set by the exchange.

Why Are Some Stocks Exchanged Over the Counter