Full Form of OTC
The term OTC stands for Over-The-Counter. It is commonly used in various contexts, including:
- Pharmaceuticals:
OTC medications are those that can be purchased without a prescription. Examples include:
- Pain relievers (e.g., ibuprofen, acetaminophen)
- Cold and allergy medications
- Antacids
Finance:
In the financial world, OTC refers to securities that are not listed on a formal exchange. Key characteristics include:
- Trading conducted directly between two parties
- Less regulatory oversight compared to exchange-traded securities
- Common in the trading of stocks, commodities, and derivatives
Market:
- OTC markets are decentralized markets where trading of financial instruments occurs directly between two parties. Features include:
- Flexibility in terms of trading hours
- Potentially lower costs for certain transactions
- Greater privacy compared to public exchanges
Understanding the context in which OTC is used is crucial, as its implications can vary significantly across different industries.