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

Question

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An over-the-counter (OTC) market is characterized by dealers who buy and sell securities for their own inventories rather than an organized auction market or electronic network. In such a market, there is less transparency and trades are negotiated directly between dealers and customers rather than on a centralized exchange.

A Securities Market Primarily Comprised of Dealers Who Buy and Sell