Capital MarketsQuestion 357 of 398
Which of the following describes the fourth market?
a.Trading of new issues directly from an issuer
b.Trading of listed securities in the OTC market
c.Direct trading of securities between institutions without using an exchange or broker-dealer intermediary
d.The market for municipal securities only
Explanation
The fourth market refers to direct trading of securities between large institutions, often through electronic communication networks, without the intermediation of a traditional broker-dealer or exchange. The third market, by contrast, is the trading of exchange-listed securities in the OTC market.
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