Question

Carl is a dealer who trades small stocks and illiquid bank stocks using his computer. He trades with other dealers all over the country without having to go to a physical location. Which type of market does this scenario best describe? a.stock markets b.primary markets c.over-the-counter markets d.foreign-exchange markets e.futures markets

Answer 1

C) over-the-counter markets

Step-by-step explanation:

An over-the-counter (OTC) market is a market where traders buy and sell stocks, commodities, currencies, etc., directly between two parties. They are smaller markets that do not have a physical location (electronic trading only) and many times includes stocks whose prices are relatively low, e.g. Best Market (OTCQX), Venture Market (OTCQB). Transactions are generally carried out without brokers.