What does FDA approval mean? - Rottenstein Law Group LLP
Over-the-counter derivatives are especially important for hedging risk in that they can be used to create a "perfect hedge." With exchange traded contracts, standardization does not allow for as much flexibility to hedge risk because the contract is a one-size-fits-all instrument. With OTC derivatives, though, a firm can tailor the contract specifications to best suit its risk exposure. 
The most popular OTC market in trading is forex , where currencies are exchanged between parties directly instead of on exchanges. This means that forex trading is decentralised, and can take place 24 hours a day – instead being limited to an exchange’s opening hours.
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OTC STOCK Dictionary entry overview: What does OTC stock mean ? • OTC STOCK (noun) The noun OTC STOCK has 1 sense: 1. stock that is not listed and traded on an organized exchange Familiarity information: OTC STOCK used as a noun is very rare.
Thus, an OTC drug product is allowed to be marketed either (1) pursuant to an FDA monograph or (2) pursuant to an NDA for products that do not fit within a specific monograph. There is also the possibility that certain OTC drug products are marketed under the grandfathering provisions of the Federal Food, Drug, and Cosmetic Act , but the FDA has never formally acknowledged that any legitimate grandfathered OTC drug exists.
Generally, OTC Markets Group will remove the Caveat Emptor designation once the company meets the qualifications for Pink Current Information, has verified the information on its company profile on , and OTC Markets Group has determined that there is no longer a public interest concern, typically no sooner than 30 days. Information on how to qualify for the Pink Current Information market designation can be found here . During the time it is labeled Caveat Emptor, any stock that is not in Pink Current Information will also have its quotes blocked on .