Over-the-Counter Markets, or OTC Markets, are decentralized platforms where financial instruments, such as stocks and bonds, are traded directly between parties without a centralized exchange. This allows for greater flexibility in trading, as transactions can occur at any time and are often facilitated by broker-dealers who negotiate prices. In OTC Markets, securities are typically less regulated than those on formal exchanges like the New York Stock Exchange. This can lead to higher risks, but it also provides opportunities for smaller companies to raise capital and for investors to access a wider range of investment options.