When the NYSE first started, some securities were traded with
\npeople called specialists, and some were not. For those stocks that
\nwere not on the NYSE, the brokers went to a specific coffee shop in
\nNew York (which is still there) and asked around for buyers or
\nsellers of stock not traded by the specialists on the street where the
\nNYSE was first formed.
\n\u2022 When they found someone, they sat down and had a cup of coffee
\nat the counter while they negotiated the price of the stock, such as
\nFirst Tennessee National Bank (which is still an OTC stock).
\n\u2022 Once the price was agreed upon, the broker went back to his office
\nand told the client the price at which the trade was executed.
\n\u2022 For a period of time, some people joked that the OTC should
\nhave been called OTP, for Over-The-Phone.
\n\u2022 Now trading has evolved and is transacted via computer.
\n\u2013 So now, industry professionals joke that it is still appropriate to
\ncall it OTC: \u201cOver-the-Computer\u201d<\/p>\n","protected":false},"excerpt":{"rendered":"