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Parallel or over the counter – OTC markets are channeled by a computer and telephone net and can be included in stock lists from NYSE and AMEX. Some of the most negotiated items are listed in NASDAQ (National Association of Securities Dealers Automated Quotations) in its national marketing system.
Items that are least negotiated for not meeting the listing requirements of the OTC (over the counter) boards. These few negotiated stocks tend to be companies that speculate more about their survival in the future. A stock agent can supply and ask for stocks market price, only by entering the company’s password in NASDAQ´s computer system. Many well reputed large companies such as INTEL, Microsoft, Cisco and Dell have decided to stay in the OTC markets instead of being listed in NYSE or AMEX.
The cost of lists are less in the OTC market being it another good reason for most low capitalization companies to be listed in the OTC. Orders are carried on in a different way as those of floor negotiations. A clients buying order is sent to the stock agent’s negotiation desk. From there a negotiator of the agency gets in touch with the market makers (in this case with the OTC market), or with the listed stocks negotiators to determine the lowest price offered.
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