On Friday, the Dow index dropped more than 900 points, posting its worst intraday performance since October 2020. The other broader stock market indices, the S&P 500 and the tech-heavy Nasdaq Composite, also declined. The not-so-promising corporate earnings and the prospect of rising interest rates made investors worried.
The over-the-Counter (OTC) securities are not listed on the standard exchanges like the New York Stock Exchange or the Nasdaq, usually to avoid the exchanges’ stringent exchange requirements. Although deemed more volatile than the standard exchange securities, not all OTC stocks are bad investments. Moreover, with retail trading still holding strong, above pre-pandemic levels, several fundamentally sound OTC stocks might potentially soar in the near term.
