Other OTC markets

When a stock doesn’t meet the listing standards of the NYSE, NASDAQ, or other exchanges, it may trade in over-the-counter (OTC) markets instead. Many of these markets operate under the OTC Markets Group.

The OTC Markets Group developed from the old “Pink Sheets,” a publication that printed stock quotes on pink-colored paper in the early 1900s. The Pink Sheets originally served as a place for lesser-known issuers that didn’t meet the financial requirements to trade on major exchanges. Today, the OTC Markets Group fills a similar role in a modern, electronic format.

Effective July 1, 2025, it’s organized into four principal markets: the OTCQX, the OTCQB, the OTCID Basic Market, and the Pink Limited Market (the Expert Market and Grey Market also exist as restricted quoting environments for the most opaque securities, but aren’t considered principal markets).

The Over-The-Counter Bulletin Board (OTCBB) was shut down by FINRA in November 2021, and is not part of the OTC Markets Group.

The OTCQX is the most prestigious market within the OTC Markets Group. Even though many OTCQX companies don’t meet NYSE or NASDAQ listing standards, OTCQX has its own financial and reporting requirements. Companies listed on this market:

• Can’t be bankrupt
• Can’t be penny stocks (unlisted stocks that trade below $5 per share)
• Must have audited financial disclosure documents

If you want the full details, see the requirements for US issuers to be listed on the OTCQX (this level of detail is generally not tested).

The OTCQB, sometimes referred to as a venture market, is designed for smaller, developing companies. These issuers typically don’t meet OTCQX standards because they’re earlier in their business cycle. OTCQB still has listing requirements. For example, companies:

• Can’t be bankrupt
• Must have at least 50 shareholders
• Are required to be audited

The specific details are usually not tested, but you can find them in the OTCQB listing requirements.

The OTCID Basic Market is a new baseline disclosure tier, introduced July 1, 2025 to replace the former “Pink Current Information” designation. Securities that don’t meet NYSE, NASDAQ, OTCQX, or OTCQB requirements can trade here as long as the issuer keeps its information current: ongoing financial disclosure, an annual management (or foreign-issuer) certification, and a verified company profile.

All other securities that don’t meet the financial or reporting requirements of the NYSE, NASDAQ, OTCQX, OTCQB, or the OTCID Basic Market may trade on the Pink Limited Market. The Pink Limited Market has essentially no financial or reporting requirements, which means it can include:

• Bankrupt or distressed companies
• Companies that choose not to provide financial reporting to investors

Because transparency can be limited or absent, Pink Limited Market securities (along with those on the Expert Market) are considered very risky. If you want more background, see the real-world Pink Limited Market (this information is typically not tested).

The Over-The-Counter Bulletin Board (OTCBB), which was shut down by FINRA in November 2021, is not part of this group.

Trades in these markets are considered second market trades. As a reminder, a trade of a non-listed stock (not listed on the NYSE or NASDAQ) in the OTC markets is considered a second market trade.