Giao dịch, Tài khoản & Hành vi cấmCâu 190 / 398
Which statement best describes the over-the-counter (OTC) market?
a.It is a physical trading floor where an auction takes place
b.It handles only the initial sale of new securities
c.It is where listed securities are matched by a designated market maker on an exchange floor
d.It is a decentralized network of dealers who negotiate trades electronically or by phone
Giải thích
The OTC market has no central physical location; it is a dealer-driven, negotiated market connected electronically and by telephone. Exchanges, by contrast, are centralized auction markets where buyers and sellers compete through posted bids and offers.
Trích dẫn luật: Securities Exchange Act of 1934Luyện miễn phí toàn bộ 398 câu hỏi — không cần đăng ký.
Câu hỏi liên quan cùng chủ đề
- What is the primary function of a market maker in the secondary market?
- A firm receives a customer order, locates another party in the market to take the other side, and charges a commission for arranging the trade. In what capacity did the firm act, and what did it charge?
- An investor owns 100 shares of a stock trading at $80 when the company declares a 2-for-1 forward stock split. After the split, what does the investor own?
- An investor needs the proceeds from a stock sale available the same day the trade is executed. Which settlement type should be specified?
- An investor is short 100 shares of a stock at $30 and wants to limit potential losses if the price rises. Which order should be placed?
- Which entity serves as the central securities depository that holds securities in electronic (book-entry) form and facilitates their transfer between members?
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