What is 'Over-The-Counter (OTC)'? | Freetrade Dictionary

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Over-The-Counter (OTC)

A security that is sold outside of an exchange.

Spot Rate

The currency exchange rate a bank quotes, valid with immediate effect.

Junk Bond

A form of debt investment that carries higher risk because of the likelihood that the issuer will default.

Value stocks

Stocks in companies that aren’t necessarily growing fast, but instead are dependable and stable.

SPAC

Find our what a SPAc or special purpose acquisition company is.

Ponzi Scheme

A form of fraud designed to lure new investors, and pays the earlier backers by using the new investors' money.

Nominal amount

The face value of a gilt. It represents the amount that will be repaid to the holder at maturity and is also used to calculate the dividend or coupon payment.

Alpha

The percentage by which an investor outperforms a relevant benchmark.

Conventional gilts

Gilts where the dividends and principal repayments are fixed in nominal terms. This is as opposed to an index-linked gilt where the dividends and principal repayments are related to movements in the Retail Prices Index (RPI).

Over-The-Counter (OTC)

More terms

Over-The-Counter (OTC)

Spot Rate

Junk Bond

Value stocks

SPAC

Ponzi Scheme

Nominal amount

Alpha

Conventional gilts

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