OTC stands for over-the-counter. In trading terms, over-the-counter means trading through decentralized dealer networks. A decentralized market is simply a market structure consisting of various technical devices. Stocks that trade via OTC are typically smaller companies that cannot meet exchange listing requirements of formal exchanges. However, many other types of securities also trade here. Stocks that trade on exchanges are called listed stocks, whereas stocks that trade via OTC are called unlisted stocks. Get access to the best stock trading services only on Direct Tradein. Sign up now and get a 100% deposit bonus credited to your account.