Which of the following is a difference between an exchange market and an over-the-counter (OTC) market?
A) An exchange market is a securities market, whereas an OTC market is a goods market.
B) An exchange market has no membership qualifications, whereas an OTC has membership qualifications.
C) An exchange market provides a physical facility for the buying and selling of securities, whereas an OTC market has no physical facility.
D) An exchange market involves brokers buying directly from the public, whereas an OTC market involves brokers buying and selling stocks through registered specialists.

Question

Quizplus · Accepted Answer

An exchange market provides a physical facility, such as a trading floor, for the buying and selling of securities, whereas an OTC market does not have a physical facility and trading takes place electronically or over the phone. The other options (A, B, and D) are incorrect because they do not accurately describe the differences between exchange and OTC markets.

Which of the Following Is a Difference Between an Exchange