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Where do you buy "OTC" stocks? I may be naive but OTC means over the counter.

I am confused as to where to purchase such stocks?

Vality
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Kevin Hornbeck
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2 Answers2

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Over The (dealer's) Counter [OTC] instruments, which includes shares, can only be bought from a participating dealer. These dealers are usually large brokerages or banks but, in the case of a small firm that is not yet publicly traded, may be through the firm itself or through an acting accountant or designated professional. It is normally expensive to buy and sell these instruments as the cost of a transaction, including commissions, is closely related to liquidity and these instruments have little to no liquidity.

MD-Tech
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Directly from the dealer, generally large broker house or Banks.

OTC means they are not traded on stock exchange. Investopedia has a nice explanation.

Dheer
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