Over-the-counter market

An over-the-counter market is trading conducted off an exchange, through dealers. For small issuers it means fewer listing requirements and less disclosure, which is precisely the environment promotion schemes need.

Also known as OTC. instruments and markets · updated 2026-09-08

Where does over-the-counter market come up?

This term is used in the following manipulation techniques, each explained in full on its own page.

• Pump and dump — A pump and dump is a scheme in which shares are accumulated cheaply, promoted with misleading claims to drive the price up, and then sold into the demand the promotion created, leaving later buyers with the loss.

Enforcement actions involving these techniques

See also

• Penny stock — A penny stock is a low-priced security, generally outside the major listing standards, with thin trading and limited public inform…
• Quotation medium — A quotation medium publishes dealer quotations for securities that are not exchange-listed. Rule 15c2-11 governs who may publish a…

Terms that refer here

Penny stock · Quotation medium

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