Over-the-counter, over the top 

price flexibility on OTC markets and personalised contracts between the participants of OTC markets

Moreover, intervention on regulated markets compared to OTC markets have a cost. (some sort of registration price ...)

OTC markets sometimes offer securities that are unavailable on an exchange.

i looking for the same info as you. from what i seen otc stocks have a lot of scammers. some companies are legit. a lot of traders do something called pump and dump.they hype the stock more than what it is. then they sale it. i trying to find a way to raise money selling stocks.the thing i like about selling stock is i dont have to worry about paying a bank our loans shark back. i would like to raise money without robbing people.from what i seen to get your stock known you use a person called a market maker. their also a person called a market promoter.they use news blogs and news letter to hype your stock but are less legit.

If you want a product that isn't listed on an exchange. A lot of bonds and derivatives are only OTC for instance.

JASON M Generally a small company looking to raise money by selling equity (stocks) will sell to private investors instead of on a market. A small company going public is an immediate red flag.

Why red flag?

It costs a lot of money to follow all the rules that exchanges have. Companies listed on an exchange have to disclose certain information publicly on a regular basis (like filing an annual report with the SEC, for example), and they have to meet certain requirements, like have a certain capitalization or the share price has to be a certain amount, etc. Only larger companies can take on that cost. OTC markets are for publicly traded companies that can't meet those requirements or don't want to trade on an exchange for some reason. Trading on an exchange helps a company have a better reputation and exposes it to more investors, so it can raise more money. It used to be very black and white - the OTC market had almost no disclosure required and trading was (still is) directly between buyers and sellers, while the exchange has a lot of rules for companies to follow (that protect investors) and plays the middleman in the transactions (meaning that you buy from or sell to the exchange, not from or to another individual). Now, OTC Markets Group (the biggest player in the OTC market right now) is making the OTC market more like an exchange, having tiers where companies of different levels trade, and having different requirements for each level. But it still costs a lot less for small companies. So, there may be a stock on the OTC market that you really want to buy and it's not available on an exchange. The apples to apples example he gave makes it sound like you can buy the exact same thing on both, and you might for certain things. You might get a better price on the OTC market because it is costs less and the exchange has high overhead. But, in general, bigger companies trade on exchanges and the smallest companies trade on OTC markets. There are a few exceptions.

The video was made in 2008.

compared to exchange markets?