The difference between an organized exchange and an over-the-counter market is that the transactions that occur on an organized exchange ________ and the over-the-counter transactions ________.
A)are initial offerings;are seasoned issues
B)are seasoned issues;are initial offerings
C)take place in a physical building;are conducted over the phone or via a computer
D)are conducted over the phone or via a computer;take place in a physical building
E)are initial offerings;are conducted over the phone

Question

Quizplus · Accepted Answer

An organized exchange takes place in a physical building (such as the New York Stock Exchange or NASDAQ), while over-the-counter transactions are conducted over the phone or via a computer. The other answer choices are incorrect because they do not accurately describe the difference between organized exchanges and over-the-counter markets.

The Difference Between an Organized Exchange and an Over-The-Counter Market