What are the Advantages of Over The Counter (OTC) Markets?
Over-the-counter (OTC) is the selling and buying of securities among 2 parties done outside of the formal exchanges as well as without the need for supervision of an exchange. In an OTC market, dealers work as market makers by quoting prices at which they would purchase as well as sell a security or currency. Financial services in Toronto like OTC markets are largely utilized for trading bonds, currencies, derivatives as well as ordered products. Here are the advantages of OTC: Here are the advantages of OTC: • OTC offers a trading platform for more modest and limited liquid companies as they will not be qualified for listing on a standard exchange. • It is an affordable way for corporate as there is a more economical price of new issues and more moderate prices of servicing the investors. • Family businesses and closely held companies are able to go public through OTC. • Dealers can work both in new issues as well as secondary markets depending on their choice. • It provides more com...