What is the difference between third and fourth markets?
A) A third market involves trading exchange-listed securities in OTC markets, while a fourth market trading involves institution-to-institution trading without using the services of brokers or dealers.
B) A third market involves trading institution-to-institution trading without using the services of brokers or dealers, while a fourth market involves trading exchange-listed securities in OTC markets.
C) A third market involves trading in corporate equities, while a fourth market involves trading in corporate debt.
D) A third market involves trading in corporate debt, while a fourth market involves trading in corporate equities.
E) A third market involves trading in call options, while a fourth market involves trading in warrants.

Question

Quizplus · Accepted Answer

The third market refers to the trading of exchange-listed securities in the over-the-counter (OTC) market, typically involving large institutional investors. The fourth market is direct institution-to-institution trading without the intermediation of brokers or dealers, facilitating large transactions directly between parties.

What Is the Difference Between Third and Fourth Markets