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A Brief Explanation of an Over-the-Counter Market | Definition. A over-the-counter market (OTC) refers to a decentralized and informal way of exchanging stocks, derivatives, or other assets between two parties.
Medical Definition of OTC (over-the-counter) OTC (over-the-counter): Available without a prescription. OTC drugs are available without a prescription, simply over the counter.. OTC drugs are in contrast to prescription drugs that require a doctor's order. Last Editorial Review: 6/9/2016.