Asked by David Minyety on May 26, 2024
Verified
The over-the-counter securities market is a good example of ________.
A) an auction market
B) a brokered market
C) a dealer market
D) a direct search market
Over-the-counter
A decentralized market, without a central physical location, where participants trade stocks, commodities, currencies, or other instruments directly between two parties and not through a central exchange.
Securities Market
The Securities Market is a marketplace where financial instruments like stocks, bonds, and derivatives are issued and traded, facilitating capital flow and investment.
- Differentiate among various market types (electronic, dealer, brokered, direct search) and understand their operating processes.
Verified Answer
BS
Baila SkendzielMay 30, 2024
Final Answer :
C
Explanation :
The over-the-counter securities market is a dealer market where dealers, also known as market makers, buy and sell securities for their own accounts. It is not an auction market where buyers and sellers come together to compete for the best price, a brokered market where brokers match buyers and sellers, or a direct search market where buyers and sellers search for each other.
Learning Objectives
- Differentiate among various market types (electronic, dealer, brokered, direct search) and understand their operating processes.