Homonym: OTC (Trading)
OTC stands for "over-the-counter," referring to medications that can be purchased without a prescription. These drugs are typically used to treat common ailments like headaches, colds, and allergies. OTC medications are available at pharmacies, grocery stores, and online, making them easily accessible to consumers.
In addition to medications, the term OTC is also used in finance to describe securities traded directly between parties without a formal exchange. This includes stocks, bonds, and derivatives that are negotiated through dealer networks. OTC trading allows for more flexibility but may involve higher risks due to less regulation compared to exchange-traded securities.