OTCs

OTCs is an acronym that can refer to two distinct concepts, depending on the context: over-the-counter drugs and over-the-counter financial markets.

In pharmacology, OTCs stands for over-the-counter medicines—drugs that can be purchased without a prescription. These products are intended for common, non-serious ailments and are regulated to ensure labeling, safety, and quality. In the United States, OTC drugs are evaluated through an OTC Drug Review process and must carry labeling with directions, active ingredients, and warnings. Other regions use similar regulatory frameworks. While OTCs are generally safe when used as directed, they can cause side effects, interact with other medications, or be inappropriate for certain populations (such as young children or pregnant individuals). Availability and allowed products vary by country.

In finance, OTCs refers to over-the-counter markets, where trading occurs directly between buyers and sellers or through dealer networks rather than on formal exchanges. OTC markets include a wide range of securities, derivatives, and other instruments that are not listed on major exchanges. Price quotes in OTC markets may be less standardized, and liquidity can vary significantly. In the United States, examples include platforms operated by OTC Markets Group (such as OTCQX, OTCQB, and Pink) and traditional broker-dealer networks. Regulatory oversight exists, but disclosure requirements and liquidity conditions are typically more limited than on exchanges, introducing higher counterparty and price risk for participants.