The over-the-counter (OTC)market is a non-transparent communications network.

Question

Quizplus · Accepted Answer

The OTC market is a non-transparent communications network, meaning that it lacks the centralized trading floor and standardized reporting requirements of traditional exchanges. Instead, OTC trades may take place through various channels, including electronic platforms, telephone, or other forms of direct communication between buyers and sellers. This can make it more difficult for investors to obtain comprehensive information on market trends, pricing, or liquidity levels, which can pose risks and challenges for those looking to participate in this market.

The Over-The-Counter (OTC)market Is a Non-Transparent Communications Network