= Over-the-counter (finance)
{wiki=Over-the-counter_(finance)}
Over-the-counter (OTC) in finance refers to the process of trading financial instruments directly between two parties without a central exchange or broker. OTC trading can involve various assets, including stocks, bonds, commodities, and derivatives. Key characteristics of OTC trading include: 1. **Decentralization**: Unlike exchange-traded securities, OTC securities are not listed on formal exchanges like the New York Stock Exchange (NYSE) or NASDAQ. Trades are executed directly between parties, often facilitated by dealers.
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