Category: Over the counter

Swaps

Swap, in finance, refers to a derivative product in which the parties to the contract agree to exchange cash flows of each other’s financial instruments. The benefits arising out of a swap contract depend...

Forwards

A forward contract is a contractual agreement between two parties to buy or sell an asset at a price agreed upon today for delivery at a specified future date. It is different from a...

Over the counter

In finance, OTC is a term which is related to the trade of stock directly among two individuals, companies or parties. OTC is short for over the counter. OTC may include bond or different...

Boiler Room

In business, the term boiler room refers to a place (a room) where salespersons indulge in the unfair practice of selling dubious goods, usually by telephone. The term has negative connotations as it involves...

Pump and Dump

Pump and dump is a type of stock scam. Under this fraud, the operators of a security artificially inflate its price. Once the price is increased, these operators offload their cheaply acquired stock to...

Spot Market

Spot market is also known as Cash market and is a constituent of Public financial markets. Spot market denotes the market where commodities or financial instruments are exchanged with a view of immediate delivery....

Penny Stock

The term “penny stock,” as it is used in the financial press and IPO research, has no precise meaning. The definition may be based on listing requirements. For example, starting in August 1991, the...