What are ‘OTC Securities’?
What types of companies are quoted and traded on the OTC market?
Who regulates the OTC market?
How do I trade OTC Securities?
How may I see quotes on OTC Securities?
Why are there no quotes for some securities?
Why is there no trading in my security today?
Why hasn't my order been executed?
What does a fifth symbol character of “Q” mean?
What does a fifth symbol character of “Y” mean?
What does a fifth symbol character of “F” mean?
Is short selling allowed for OTC securities?
What happens to my shares when a company is delisted?
Why is the company contact information for a company on otcmarkets.com missing or inaccurate?
How can I view new securities to the OTC and other corporate actions?
How can I see real-time quote and trade information?
What happens when the SEC suspends trading or FINRA halts trading in a security?
What are the best browser(s) to view otcmarkets.com?
What are ‘OTC Securities’? ↑Top
The term ‘OTC Securities’ is a catchall phrase for any security that is not listed on a U.S. stock exchange.
What types of companies are quoted and traded on the OTC market? ↑Top
There are a wide variety of companies – spanning all major sectors and industries, with market capitalizations ranging from large cap to micro cap – quoted and traded in the OTC market, including:
- Large foreign issuers that are listed on an exchange in their home country, but trade on the U.S. OTC market;
- Companies formerly listed on an exchange that failed to remain in compliance with the required standards for listing;
- Companies that have voluntarily delisted from an exchange, due to the increased compliance costs associated with the Sarbanes/Oxley legislation, and have chosen to be traded OTC;
- Closely held and thinly traded companies which have chosen not to incur the expense of listing on an exchange; and,
- Small companies that cannot or do not wish to meet the listing requirements of an exchange.
Who regulates the OTC market? ↑Top
The OTC market and broker-dealers’ activities in the market are regulated by The Financial Industry Regulatory Authority (FINRA), the U.S. Securities and Exchange Commission (SEC) and various state securities regulators. In addition, companies with SEC-registered securities are regulated by the SEC. OTC Markets Group is neither a stock exchange nor self-regulatory organization (SRO) and is not regulated by FINRA or the SEC.
How do I trade OTC Securities? ↑Top
To trade OTC securities you must open an account with a brokerage firm that provides services in OTC securities. Investors may not buy or sell securities directly through OTC Markets. For more information on trading OTC Securities, see: Investing in OTC Securities.
How may I see quotes on OTC Securities? ↑Top
Quotes for all OTC securities are available on OTCMarkets.com by entering a symbol in the quote search area at the top left of any page. All OTCQX securities display real-time level 2 quotes while all OTCQB and OTC Pink securities display real-time inside (best bid and ask) quotations. Quotes are updated from 6:00 AM to 4:00 PM on all trading days.
Why are there no quotes for some securities? ↑Top
Quotes for OTC securities may not be available on OTCMarkets.com for two reasons:
- The security is a Grey Market security. Grey Market securities do not have any quotes in either OTC Link or the OTCBB. Grey Market securities are indicated in OTCMarkets.com by a grey triangle next to the symbol or on the top right of the quote page.
- There is no inside market for the security. For securities without level 2 quote display, quotes will not be shown if there is not an “inside” market. An “inside” market is defined by OTC Markets as two priced quotation on the respective side of the market (either bid or ask). If the security does not satisfy this requirement then “No Inside” will be displayed on OTCMarkets.com.
Why is there no trading in my security today? ↑Top
There are many thinly-traded OTC securities which are not traded every day by broker-dealers.
Why hasn't my order been executed? ↑Top
This question must be answered by your broker-dealer. Broker-dealers hold customer orders in their proprietary order books and only they can tell you why your order has not been filled. Possible explanations include: the order may not yet be marketable (at or within the bid/ask spread) or if it is/was marketable, other customer orders at the same price may have been in the order book longer and received execution priority.
What does a fifth symbol character of “Q” mean? ↑Top
In the fifth character of a symbol, "Q" means the issuer of the security is involved in bankruptcy proceedings. See the Symbology Guide for more information on character meanings.
What does a fifth symbol character of “Y” mean? ↑Top
In the fifth character of a symbol, "Y" often, but not always, means the security is an American Depositary Receipt (ADR). See the Symbology Guide for more information on character meanings.
What does a fifth symbol character of “F” mean? ↑Top
In the fifth character of a symbol, "F" often, but not always, means the security is a Foreign Ordinary. See the Symbology Guide for more information on character meanings.
Is short selling allowed for OTC securities? ↑Top
Yes – short selling is allowed for OTC securities. You may find the short interest (amount of shares sold short) for specific OTC securities by selecting the “Short Sale” tab within the Quote page or by going to the OTC Short Sales page.
What happens to my shares when a company is delisted? ↑Top
If you own stock that has been delisted from an exchange and is now quoted on OTC Link or the OTC Bulletin Board, nothing has changed with the shares themselves. You are still the beneficial owner of the securities and may trade them. You should check with your current broker-dealer to make certain that they provide services in OTC securities. If not, you will need to locate a broker-dealer that does provide services in OTC securities. See the Market Participant Directory.
Why is the company contact information for a company on OTCMarkets.com missing or inaccurate? ↑Top
OTC issuers are not required to maintain current address or contact information with OTC Markets Group. With the exception of OTCQX companies, OTC Markets does not maintain listing agreements with OTC traded companies and has no other means of compelling companies to provide this information. Many investor-focused issuers do voluntarily provide their contact information and keep it current.
How can I view new securities to the OTC and other corporate actions? ↑Top
All corporate actions, including: symbol changes, venue changes (new to the OTC), OTC Tier changes, Caveat Emptor status changes, Splits, Dividends, and Deletes are available within the Corporate Actions section.
How can I see real-time quote and trade information? ↑Top
Real-time Level 2 quotes are available for sponsored securities, and all OTCQX securities on OTCMarkets.com. Real-time Level 2 quotes and trades for all other OTC securities are available on OTC Dealer, OTCQuote.com, and OTCIQ.com.
What happens when the SEC suspends trading or FINRA halts trading in a security? ↑Top
When a security is suspended or halted, OTC Markets removes all market participants and their quotes from the system and displays a "Halted/Suspended" message.
SEC suspensions for OTC securities have a duration of 10 business days. After the suspension ends, market participants may re-enter the stock if they comply with Rule 15c2-11. This rule requires the filing, with FINRA, of a new Form 211 which must include the issuer’s current financial information.
FINRA halts may be lifted when FINRA determines that the basis for the halt no longer exists or 10 days have past. After the halt ends, market participants may re-enter the stock if the piggyback qualification has not lapsed. If the piggyback qualification has lapsed then market participants may re-enter the stock if they comply with Rule 15c2-11. This rule requires the filing, with FINRA, of a new Form 211 which must include the issuer’s current financial information.
What are the best browser(s) to view OTCMarkets.com? ↑Top
Internet Explorer, version 7 and higher, Mozilla Firefox, version 3, Chrome and Safari are supported browsers. Internet Explorer version 6 is not supported.
