New to the game? Here are some terms and acronyms
you might see along the way...
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Market Maker
A Market Maker is an OTC middle-man, quoting buy/sell prices
to clients and making a profit on the difference. This
is usually done because international OTC transactions
are conducted virtually. In spite of the negative connotation
associated with the term “middle-man” nothing could be
farther from the truth for a Market Maker. Masters of
their trade, the fiscal well-being of their clients directly
correlates to their own personal revenue.
 NASD — National
Association of Securities Dealers
Comprised of securities companies, the NASD, founder of
the NASDAQ is a Self Regulatory Organization
(SRO) who is accountable to the SEC.
In other words, the NASD is a group of companies who oversee
and regulate their own activities for their own collective
betterment.-
 NASDAQ — National
Association of Securities Dealers Automated Quotations
Created as a simple bulletin board in 1971, the
NASDAQ is now the largest electronic stock-market with
over 3000 securities, and conducts, on average, more
trading daily than any other American market – usually,
well over a billion stocks. (!)
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OTC Securities — Over
The Counter Securities
Not to be confused with the more widely known definition
Over The Counter, which usually refers to products like
cough medicine, an OTC Security is a stock that is traded
directly. That is to say, it is not traded on a national
exchange, but rather bought/sold directly between two parties.
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OTCBB — Over The Counter Bulletin
Board
An OTCBB is an inter-deal quotation system that provides
information on OTC Securities (see above) not listed on
national securities exchange. The NASD oversees these
OTCBB’s.
 SEC — Security
and Exchange Commission
A federal agency, created under president FDR in 1934 during
the Great Depression; its job is to regulate the stock
market and enforce federal laws regarding securities, stocks,
trading, etc. The SEC Chairman is appointed by the President
and is currently Charles Christopher Cox.
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