In the OTC market, the prices at which securities are traded result from both competitive bids and negotiation.

Question

Quizplus · Accepted Answer

In the OTC market, securities are traded between buyers and sellers through a network of dealers who compete with each other to offer the best prices. Prices may also be negotiated between the parties involved in the transaction. Therefore, both competitive bids and negotiation influence the prices at which securities are traded in the OTC market.

In the OTC Market, the Prices at Which Securities Are