OTC-traded securities are organized into three markets to inform investors of opportunities and risks: OTCQX, OTCQB and Pink.

[4] Currently, a network of 89 broker-dealers price and trade a wide spectrum of securities on the OTC Markets platform.

Apart from the OTCQX market, which has rules that include financial requirements, the designations do not signify issuer quality or merit of any security.

[15] To be traded on this tier, companies must undergo a qualitative review by OTC Markets Group.

Companies are not required to be registered with or reporting to the SEC, but they must post financial information with OTC Markets Group.

[18] The OTCQB market contains a one penny ($0.01) bid price requirement "intended to remove companies that are most likely to be the subject of dilutive stock fraud schemes and promotions".

Investor confidence improves when there is more information about a company's ownership structure, professional advisors and service providers.

Blue sky laws are state regulations established as safeguards for investors against securities fraud.

The laws, which may vary by state, typically require sellers of new issues to register their offerings and provide financial details.

As of April 2018,[update] 60% of the 50 states now acknowledge the OTCQX Market for the purposes of secondary trading exemptions.

Companies in this category are further categorized by the level and timeliness of information they provide to investors and may have current or limited public disclosure.

Companies that are unwilling or unable to meet OTC Markets' Guidelines for Providing Adequate Current Information with Quarterly and Annual Reports every three months, but which still submit information at least every six months, are in this category.

Securities of publicly traded companies that are not willing to provide information to investors are considered highly risky.

[18] There is a public interest concern associated with the company designated as "Caveat Emptor" (Latin for "buyer beware").

This may include a spam campaign, stock promotion or known investigation of fraudulent activity committed by the company or through inside information.

The OTCBB has diminished in importance, with very little activity, but was previously retained as possible last resort system in case of disruption.

Recently, the product integrated "Hot Sector" information about cannabis, cryptocurrency and blockchain.

[35] The company calculates and licenses indices of securities that trade on one of the top two market tiers, including the OTCM QX ADR 30 Index of OTCQX-traded American depository receipts