OTCBB Glossary - A

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Active Security

A security eligible for the OTC Bulletin Board® (OTCBB®) that meets the frequency of quotation requirement (see SEC Rule 15c2-11) or the so-called "piggyback" exception (see SEC Rule 15c2-11(f)(3)). Once the frequency of quotation or piggyback exception has been satisfied, authorized participants may register in a security. As long as the security remains active, any participant may quote the security without a Form 211 submission.

American Depositary Receipt (ADR)

A U.S. security that is a repackaged foreign security. A U.S. bank creates an ADR based on evidence of ownership of a specified number of shares in the foreign security, while the underlying shares are held in a depositary in the issuing company's home country. U.S. investors may buy shares in the foreign company in the form of an ADR. The certificate, transfer, and settlement practices for ADRs are identical to those for U.S. securities. U.S. investors often prefer ADRs over the direct purchase of foreign shares because of the ready availability of price information, lower transaction costs, and timely dividend distribution. Additionally, some U.S. investment institutions are not permitted to invest in non-U.S. securities, but may invest in ADRs.

Ask (Offer) Price

The price at which a market maker is willing to sell a security.