AladiEX Is Launching Another Smart Investment Tool-OTC on June 15TH.
From very well established companies to booming new age up-and-comers, AladiEX provides dozens of different smart investment tools to the investors. We always try to deliver simplified and customer friendly tools. We understand some investments are a little complicated and confusing. AladiEX breaks down the investing complexities with intuitive tools, which makes trading simple and efficient. Now, AladiEX is launching Over the counter (OTC) in a decentralized market on 15th June to make our investing platform, even more, user friendly. Our trading platform always combines the real-time market data and advanced tools and functions to deliver the most accurate, unparalleled market trading experience.
Over the counter (OTC) is the trading market. It is a localized market where the members trade stocks, commodities, currencies or any other securities directly between two members without the trade-off of the central broker or exchange. Over the counter, the market operates electronically without any physical locations. The business is entirely conducted by emails, telephones and specific computer networks. This financial market is altogether different from other market systems like the auction market system. Dealers play a significant role in the OTC market. Dealers are the market makers who quote the pricing to buy and sell the security, currency and other financial products.
OTC is majorly involved in trading bonds, currencies, derivatives and structured products. OTC can also be used to trade other trade equities like OTCQX, OTCQB, and OTC Pink marketplaces. Financial Industry Regulatory Authority(FINRA) regulates the OTC trading market. Smaller companies who cannot meet the trading requirements of formal exchange tend to participate in the OTC trading market. But, this OTC is not limited to small companies. Many other well-known companies also participate in this trading market. Stocks which meet the trading requirements of the exchange is called as listed stocks, and the stocks which are not listed in the trading and trade through over the counter trading is called as unlisted stocks. Over the counter market will trade by broker-dealers, who work out directly with each other over phone or email with the help of OTCBB. Dealers are the market marker who uses the Pink Sheets and the OTC Bulletin Board, controlled by the National Association of Securities Dealers (NSAD).
Buying and selling stocks is entirely different from another trading as these securities are not listed on the New York Stock Exchange (NYSE). An investor can track the market prices through the Over-the-Counter Bulletin Board. Trading can be made through market makers who maintain inventory for stocks and bonds which are available directly for the buyers. A couple of hundred thousand companies are nowadays investing in the over the counter trading market. But, a potential investor should be utterly aware that the broker companies will provide a lot more information about their finances, business operations, or other products they possess, unlike the companies listed on the regular stock exchanges. Before investing, the investor should thoroughly research the companies he wants to invest in.