Which one of the following is a true statement?
A)The over-the-counter market is a network of dealers who buy and sell the stocks of corporations that are not listed on a securities exchange.
B)Account executives specialize in a particular stock.
C)OTC trading is for investors who want to buy or sell stocks in stores.
D)Specialists are not members of the NYSE.
E)Most NYSE members represent brokerage firms that do not charge commissions on security trades.

Question

Quizplus · Accepted Answer

The over-the-counter market is a network of dealers who buy and sell the stocks of corporations that are not listed on a securities exchange. This statement accurately describes the OTC market.

B) Account executives typically work for brokerage firms and handle multiple stocks, not just one particular stock.

C) OTC trading actually takes place electronically, not in physical stores.

D) Specialists are members of the NYSE who are responsible for maintaining a fair and orderly market for specific stocks.

E) This statement is not true - brokerage firms typically charge commissions on security trades, and most NYSE members represent these firms.

Which One of the Following Is a True Statement