A broker-dealer receives a customer order to buy shares of a security listed on the New York Stock Exchange (NYSE). Instead of executing the trade on the NYSE exchange floor or electronic order book, the broker-dealer routes and executes the trade over-the-counter (OTC) with a market maker. Which secondary market venue classification describes this trade?
- The Third MarketCevap
- BThe Primary Market
- CThe Fourth Market
- DThe Second Market
Cevap
The Third Market is the venue where exchange-listed securities are traded over-the-counter (OTC).
The correct answer is the Third Market. The Third Market is defined as the over-the-counter (OTC) market where exchange-listed securities (such as NYSE- or Nasdaq-listed stocks) are bought and sold off-exchange by institutional investors and broker-dealers.
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Anahtar Kavram
Third Market Trading