PlayInfoBox

Home /Investing /Stock Market Tiers: Main Board, Growth Board, Junior Board & OTC

Stock Market Tiers: Main Board, Growth Board, Junior Board & OTC

Which tier a stock trades on can make a big difference in liquidity and risk.

Main Board

The main board is typically a stock exchange's flagship market, home to large, established, blue-chip companies. Listing here usually requires meeting strict financial requirements, such as minimum shareholder equity, revenue, and profitability, and it generally forms the basis for a country's headline stock index.

Growth Board

A growth board is generally aimed at smaller, high-growth companies in sectors like technology, biotech, or media, with listing requirements less strict than the main board's. Many growth boards also run a separate 'technology assessment' listing track that lets a pre-profit company list if independent evaluators certify strong technical potential, which is why it's common to see loss-making biotech or tech firms listed here.

Junior Board

A junior board is designed for very early-stage startups and small businesses, with listing requirements eased far more than the growth board's, and is often explicitly designed as a stepping stone toward eventually up-listing to the growth board.

Over-the-Counter (OTC) Market

An over-the-counter market, often run by an industry association rather than the exchange itself, lets investors buy and sell shares of companies that aren't listed on any exchange at all β€” whether they're preparing for a future listing or have no listing plans. It usually separates companies into tiers based on how much they publicly disclose, with the least-disclosing tier carrying more information risk.

Moving up between tiers

A company that grows on the junior board can often 'up-list' to the growth board, and a growth-board company that gets large enough can up-list to the main board, typically through a streamlined review process rather than a full new listing review, once it meets tier-specific requirements like shareholder equity, market capitalization, or revenue.

What to watch for on junior and OTC markets

Junior-board and OTC-market shares tend to trade in much smaller volumes than main-board or growth-board shares, so the gap between buy and sell prices can be wide, and you may not be able to trade at your target price when you want to. Disclosure requirements are also often lighter, so it can be harder to find detailed company information β€” brokers are generally required to walk first-time investors through these risks before they trade in these markets.

How to check which tier a stock trades on

Most brokerage apps show a stock's market tier on its detail screen. Shares on an over-the-counter market, however, are often not tradable through a regular brokerage app at all β€” they may require a separate platform run by the market operator, or a special service offered by your broker, so check before assuming a stock is tradable through your usual app.

Rules like short selling can also differ by tier

Which market tier a stock is on can also affect practical trading details, such as whether short selling or margin/collateral lending is available for that stock. This page provides general information only and is not investment advice about any specific stock β€” listing requirements and other figures change as rules are updated, so confirm the latest standards with the relevant exchange or industry association.

Frequently Asked Questions

Does a junior-board company still require a special deposit or account to invest in?

This varies by country and has changed over time β€” some junior markets used to require a minimum deposit or a special account before individual investors could buy in, but many have since removed that requirement so general investors can invest without a separate deposit. Brokers are still generally required to walk first-time investors through the risks involved.

Can I sell OTC shares just as easily as main-board or growth-board shares?

You can typically place a trade, but with far lower trading volume, you may not be able to sell at your target price or timing. Tax treatment can also differ from exchange-listed shares, so it's worth confirming with your broker or a tax professional before selling.