Over the counter and Sanctions: Difference between pages

From ACT Wiki
(Difference between pages)
Jump to navigationJump to search
imported>Administrator
(CSV import)
 
imported>Doug Williamson
(Add link.)
 
Line 1: Line 1:
(OTC).  
1. ''International trade.''
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.  


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.
In the context of international trade, economic sanctions are government regulations which prohibit trade with specified countries or prohibit the trading of particular goods (usually military in nature) with specified countries.


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. 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. 


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.
2.  ''International relations.''
 
Sanctions may also impose tariffs, other economic disadvantages or sporting or cultural restrictions on a specified country, with the aim of exerting political pressure on its government.
 
 
3.  ''Law - international law.''
 
More broadly, a sanction can be any legally imposed penalty, punishment, or the threat of one.
 


== See also ==
== See also ==
* [[Exchange traded]]
* [[Blocking Regulation]]
* [[Exchange-traded option]]
* [[Boycott]]
* [[Listing]]
* [[Compliance]]
* [[NASDAQ]]
* [[Geopolitical risk]]
* [[Security]]
* [[International law]]
* [[Stock]]
* [[International trade]]
* [[Law]]
* [[OFAC]]
* [[OFSI]]
* [[Quota]]
* [[Sanction]]
* [[Sanctions screening]]
* [[Side pocket]]
* [[Tariff]]
 
 
== Other ACT resources==
*[https://www.treasurers.org/hub/technical/russia-ukraine Russia-Ukraine crisis - resources for treasurers - sanctions lists]


[[Category:Accounting,_tax_and_regulation]]

Revision as of 18:35, 1 October 2022

1. International trade.

In the context of international trade, economic sanctions are government regulations which prohibit trade with specified countries or prohibit the trading of particular goods (usually military in nature) with specified countries.


2. International relations.

Sanctions may also impose tariffs, other economic disadvantages or sporting or cultural restrictions on a specified country, with the aim of exerting political pressure on its government.


3. Law - international law.

More broadly, a sanction can be any legally imposed penalty, punishment, or the threat of one.


See also


Other ACT resources

Retrieved from ‘https://wiki.treasurers.org/w/index.php?title=Over_the_counter&oldid=43096’