A securities market primarily consisting of dealers who buy and sell for their own inventories is generally referred to as a(n)________ market.

Question

Quizplus · Accepted Answer

An over-the-counter (OTC) market is a decentralized market in which financial instruments are traded directly between two parties without the need for an exchange. In an OTC market, there is no centralized trading floor or exchange, and instead, trading takes place through a network of dealers who buy and sell securities for their own inventories. This type of market is also known as a dealer market. Therefore, the correct option is A) over-the-counter.

A Securities Market Primarily Consisting of Dealers Who Buy and Sell