What Is an Over-The-Counter Stock?

Video Transcript

"Hi, my name is Bill Rae. I'm with Alumni Financial Services. I've been in the business and finance world for well over 20 years and our question is, what is an over the counter stock? That's an excellent question, but first of all let me tell you or perhaps I should throw a disclosure out. I'm not here to give you stock advice or to solicit, however commonly the term over the counter stock is commonly referred to a stock that is not traded publicly on exchanges such as the New York Exchange or the AMEX, OK? An over the counter stock generally is a stock that is traded within a dealer network or group if you will. Derivatives is a common over the counter stock meaning that it is not traded publicly, again through the New York Stock Exchange or AMEX. As in all things, if you're looking to do over the trading, you may want to do some homework. Make sure you understand who you're dealing with, how and when you can get your money back. As all type of investments, with reward does come risk. We advise that you understand any agreement or contract that you're about to get into. Know what the fees are. Know how and when you can get your money back. And if at all possible, what returns you should reasonably expect. We also advise always seek licensed competent, professional advice. My name is Bill Rae, I'm with Alumni Financial Services and as always we're here to help you build wealth."