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The OTC differs from an organized exchange market in that the OTC market:

a. has a physical meeting place.
b. never closes.
c. has 100 members.
d. operates in an electronic network.

1 Answer

6 votes

Final answer:

The OTC market differs from an organized exchange market by operating in an electronic network, facilitating trades from numerous locations without a central physical trading floor.

Step-by-step explanation:

The OTC market differs from an organized exchange market mainly in its structure and the way transactions are conducted. The correct answer to how the OTC differs from an organized exchange market is that it operates in an electronic network. Unlike organized exchanges that have physical locations where trading occurs and may only operate during specific hours the OTC market allows for the buying and selling of stocks via a decentralized electronic network. This means that transactions can occur from many different physical locations without the need for a central trading floor.

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