Over-the-Counter Market

Fair Value Accounting
Fair Value Accounting involves the valuation of financial obligations according to pricing models rather than their current market price, especially when there's no active market presence.
Fourth Market
The fourth market involves the direct trading of large blocks of securities between institutional investors, bypassing brokers to save on commissions.
OTC Market
The OTC Market (Over-the-Counter Market) is a decentralized market where trading of financial instruments such as stocks, bonds, commodities, and derivatives occurs directly between two parties without a central exchange or broker.
Swap
A financial mechanism that enables parties to exchange cash flows or financial instruments to meet specific funding or investment needs. Common types include currency swaps and interest-rate swaps.
Valuation Risk
Valuation risk refers to the uncertainties and potential errors that arise when determining the fair value of an asset, liability, or business. This risk can occur in various scenarios, such as during the acquisition of a business or the valuation of over-the-counter market options.
Yellow Sheets
The Yellow Sheets are daily publications issued by the National Quotation Bureau (NQB) that detail the bid and asked prices and the firms making a market in corporate bonds traded in the Over-the-Counter (OTC) market.

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