What's an over-the-counter deal？

An over-the-counter (OTC) deal is a transaction between two parties that is not conducted on a formal exchange. Instead, it is negotiated directly between the buyer and seller, typically through a broker or dealer. OTC deals are not subject to the same regulations and disclosure requirements as transactions that take place on a formal exchange. Examples of OTC deals include buying and selling stocks, bonds, and other securities, as well as commodity trades and foreign currency exchanges.