Capital MarketsQuestion 351 of 398
The over-the-counter (OTC) market is best described as:
a.A decentralized dealer network where securities trade directly between parties rather than on a centralized exchange floor
b.A physical trading floor located in New York
c.A market exclusively for U.S. Treasury securities
d.The primary market for all IPOs
Explanation
The OTC market is a decentralized network of dealers who trade securities directly with one another and with customers, rather than through a centralized exchange auction. Many bonds and some equities trade OTC, with prices negotiated between dealers.
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