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| (OTC).
| | ''Financial reporting - balance sheet - liabilities.'' |
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| Direct dealing between counterparties - for example corporates and banks - which allows for tailoring of financial contracts but which also exposes the parties to credit risk.
| | Amounts which are due to be paid by a reporting entity. |
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| Exchange trading is the alternative to OTC dealing. Exchange traded instruments are standardised, and less flexible, but the interposition of the exchange substantially reduces credit risk.
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| More specifically, this is a market for the trade of securities that are not listed on the stock exchange consisting of bilateral dealing contracts between brokers.
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| As opposed to an organised stock exchange, prices on the OTC markets are set by direct negotiation between dealers and not by an auction system.
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| The OTC market is a market for companies which do not fulfil the listing requirements of the official stock exchange markets, or for derivatives or other financial instruments that do not have a liquid market.
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| == See also == | | == See also == |
| * [[Exchange traded]] | | * [[AP]] |
| * [[Exchange-traded option]] | | * [[Balance sheet]] |
| * [[Foreign exchange swap]] | | * [[Creditors]] |
| * [[Listing]] | | * [[Liabilities]] |
| * [[NASDAQ]] | | * [[Payables finance]] |
| * [[Security]] | | * [[Receivables]] |
| * [[Stock]] | | * [[Trade payables]] |
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| ===Other links===
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| [http://www.treasurers.org/otc European regulation of OTC derivatives: Implications for non-financial companies – ACT briefing note, Updated May 2014]
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| [[Category:Corporate_financial_management]] | | [[Category:Accounting,_tax_and_regulation]] |
| [[Category:Risk_frameworks]]
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Latest revision as of 12:43, 20 March 2021
Financial reporting - balance sheet - liabilities.
Amounts which are due to be paid by a reporting entity.
See also
