Over the Counter

Over the Counter – the term over-the-counter is a security that has not met the requirements of the major exchanges so therefore not listed.  These securities are generally thought of as risky investments because they aren’t listed.  It could also be a very small or unstable fund too, which is also a risky investment.  Information obtained for over-the-counter funds are usually handled via telephone or a computer network, obtaining prices and information directly...  But OTC funds usually trade in frequent because of the instability of the company and its funds, which make the bid-ask spread so much larger the stocks traded on an exchange