Shareholders in Great American have seen their over-the-counter shares fall to $4.25 from about $14 when the bonds were sold.

Over-the-counter shares are traditionally those of smaller, high-growth companies.

SOME over-the-counter shares are well regarded by many analysts.

Because over-the-counter shares are quoted only as "bid" and "asked" prices by the market-maker brokers specializing in the stock, the true value can be elusive.

The firms are accused of soliciting money from investors for United States over-the-counter shares that turned out not to exist or in which trading had been suspended.

They issued shares called partes (for large cooperatives) and particulae which were small shares that acted like today's over-the-counter shares.

The number of over-the-counter shares sold short and not yet covered dipped slightly between mid-November and mid-December, the National Association of Securities Dealers said yesterday.

In 1995, shares in "Muji Tsunan Campsite" were registered as over-the-counter shares of Japan Securities Dealers Association.

Mr. Rubin also made money brokering block trades of over-the-counter shares, which can be hard to unload because of their low trading volume, and invested in other financially distressed companies.

(It will be assumed in this example that the S&P500 index covers only large shares quoted on the NYSE, although in actuality the S&P500 index includes some over-the-counter shares.)

Both firms make markets in 400 of the same over-the-counter stocks.

A third signal would be heavy speculation in over-the-counter stocks.

In particular, traders seem to be betting against the bigger over-the-counter stocks.

The Nasdaq composite index of over-the-counter stocks has gone up about 16 percent.

Health-care companies also dominated the winners list in over-the-counter stocks.

Small over-the-counter stocks continued to gain strength, but most issues leveled off.

When such investors get out of the blue chips, these analysts say, it will not be to go into over-the-counter stocks.

"It would suggest that there really is a long-term positive outlook for the over-the-counter stocks."

For one thing, investors aren't always getting the best price, particularly when they buy over-the-counter stocks traded in the Nasdaq system.

"There was good breadth in the market, with a lot of money going back into over-the-counter stocks.

Its locally traded over-the-counter stock sold for pennies a share.

Several experts said the strength of the over-the-counter stocks was unlikely to be a passing fancy.

"The small over-the-counter stocks are going nowhere," he said.

Of firms that deal with the public, no one makes markets in more over-the-counter stocks than Shearson.

Currently, multiple listing is allowed in over-the-counter stock options.

The fire also disrupted, but did not halt, trading in the Nasdaq over-the-counter stock system.

Indeed, since 1987 many dealers in listed securities and over-the-counter stocks have pulled back from making markets.

Market makers in over-the-counter stocks might pay a discounter to send them orders.

The Nasdaq index of over-the-counter stocks rose 25.6 percent.

In 1968, the company became Flowers Industries, and began trading over-the-counter stock.

Even among over-the-counter stocks, which have lagged behind their listed counterparts recently, many more rose than fell.

With 2.7 million shares traded, it was the second-most-active over-the-counter stock.

Among over-the-counter stocks, computer issues declined after Microsoft announced that its growth in 1994 would lag behind the 1993 rate.

In 1959, Harzfeld's went public, with its common shares traded on the local over-the-counter stock exchange.

Over all, even in that extraordinary week, more over-the-counter stocks declined in price than advanced.