Over-The-Counter (OTC) securities are securities not listed on a national securities exchange. These securities generally trade on Alternative Trading Systems (ATSs) which are quotation mediums and might include electronic interdealer quotation systems that display quotes from broker-dealers for many OTC securities. Presently there are only two interdealer quotation systems, Global OTC ATS (part of NYSE Group), and OTC Link ATS (operated by OTC Markets). "Market makers" and other broker-dealers who buy and sell OTC securities can use these ATSs to publish their bid and ask quotation prices. Each ATS, has different eligibility requirements for quoting OTC securities on their systems. Investors may review these requirements on the websites of Global OTC ATS (https://www.globalotc.com) and OTC Link ATS (http://www.otcmarkets.com). In addition, some companies that issue OTC securities do not file periodic reports or audited financial statements with the SEC, making it very difficult for investors to find current, reliable information about those companies. Investors should take extra care to thoroughly research any OTC security issued by a company that does not provide current information.
Exercise Caution with Crypto Asset Securities
Read our Investor Alert to learn why we urge investors to be cautious if they are considering an investment involving crypto asset securities.
School’s Out, Investing For Your Future is In
Educate yourself and learn how to invest for your future by reading our Director’s Take article. Even though school’s out, saving and investing is in!
Investing Quiz – May 2023
Test your knowledge of diversification, index funds, fraudulent promotions, and more!