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Definition of the Week: Over the Counter Bulletin Board (OTCBB)

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Over the Counter Bulletin Board (OTCBB)

This is an electronic quotation service that is offered by the National Association of Securities Dealers (NASD). This service shows real-time quotes, volume information, and last-sale prices for over-the-counter equity securities. Stocks that trade on the OTCBB are considered volatile and quite risky. A company must not meet any listing requirements to be placed on the OTCBB.

stockbrokers.com Explains OTCBB:

While there are no listing requirements, the OTCBB does require a company to file current financial statements, unlike the Pink Sheets marketplace. Stocks that are available for trade on the OTCBB will have a .ob after their ticker symbol. Most OTCBB companies are also quoted on the Pink Sheets. It is important to note that because of light trading volumes the bid/ask spread is often large in this marketplace. A stock on the OTCBB should be considered just a tick more “reliable” than one only on the Pink Sheets, but these companies don’t even come close to meeting the requirements necessary to be listed on the NYSE or NASDAQ.

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