There is a decentralized market where geographically dispersed dealers are linked by telephones and computer screens. The market is for securities not listed on a stock or bond exchange. Name the market ?
Correct answer: B. Over-the counter (OTC)
- A. Grey market
- B. Over-the counter (OTC)
- C. Open market
- D. Back market
Explanation
An over-the-counter market has no centralized exchange; geographically dispersed dealers trade securities through communication networks such as telephones and computer systems. It commonly handles securities not listed on formal stock or bond exchanges.
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