What does over-the-counter mean literally?
I've found references that this term is originally used for the purchase of stocks that not listed on the stock exchange.
From etymology.com:
Adjective phrase over-the-counter is attested from 1875, originally of stocks and shares.
It seems like it could mean two things:
- Stock is sold retail rather than through an exchange. The exchange takes place simply by handing the stock "over the counter" rather than through a third party exchange.
- Stock is sold "on the other side of the counter" rather than "behind" the counter which implies unlisted.
I would be appreciative if someone with an OED subscription wouldn't mind taking a look and seeing if maybe this was derived from another term or if some of the earlier documented references of its use could give some hints.
Over-the -counter is quite an old expression whose meaning is just literal, and refer to an informal sale, generally in a shop, without any specific rule or prescription. (Ngram)
Mr. PURVER:' In England, nearly all bread was sold over the counter ; here, it was nearly all sold by delivery. In England, the bread was weighed over the counter. Mr. O'CONNOR said he was very glad to have received the deputation and to ...(Votes & Proceedings, Volume 2 -1803 Di New South Wales. Parliament. Legislative Council)
B.S. Keeps in a small town a wine and spirit vaults, selling over the counter, and ( on market days only) providing also rooms for customers to sit down in. B. S. does not reside at the premises, but they belong to and are occupied by a relative , ...(Justice of the Peace and Local Government Review, Volume 12-1844)
- The idea is that of a shop, where you generally have a counter with on one side the shop-assistant and a client on the other side. The product is sold and handed over the counter to the client . Nowadays you help yourself at the counter and go to the cashier directly. –
Idiomatically it is commonly used in (pharmacy) and finance:
- Legal for sale or distribution without the requirement of a prescription (of medicine and other treatments); abbreviated as OTC. (Wiktionary)
- Over-the-counter in finance, simply refers to an exchange of shares or bonds which are not listed in official markets, or , even though they are listed, volumes are too thin to allow proper transactions, so OTC transaction are carried out between a buyer and a seller, generally through a brokerage house, but without going thorough the official markets. (Wikipedia)