The Over the Counter Market

When it comes to small Cap, micro cap and penny stocks, the Financial Industry Regulatory Authority (FINRA) regulates broker-dealers that operate in the over-the-counter (OTC) market. Many equity securities (stocks), corporate bonds, government securities, and certain derivative products are bought and sold on the OTC market. The OTC Bulletin Board and Pink OTC Markets, Inc., are two of the major players that operate within the OTC market.

The OTC Bulletin Board

The biggest OTC market is the OTC Bulletin Board (OTCBB) an electronic inter-dealer quotation system that displays real-time quotes, last-sale prices, and volume information for many over-the-counter securities that are not listed on a national securities exchange. FINRA oversees the OTCBB.

Under the OTCBB’s eligibility rule, companies that want to have their securities quoted on the OTCBB must file current financial reports with the SEC or with their banking or insurance regulators. For more information, you may view the OTCBB’s website at