Trading stocks on exchanges and over-the-counter (OTC) markets differ in several ways. In exchange trading, buyers and sellers trade stocks on a centralized platform with standardized rules and regulations, providing transparency and liquidity. The prices of stocks are determined by the forces of supply and demand, and traders can buy or sell at any time during trading hours. OTC trading, on the other hand, involves the trading of stocks directly between parties without the involvement of a centralized exchange. Prices in the OTC market are typically negotiated between the buyer and the seller, making it less transparent and less liquid than exchange trading. Additionally, OTC stocks may be less regulated and more prone to price manipulation than exchange-traded stocks.