Question

After operating for years as a privately held corporation, Iron Age Metalworks plans to publicly trade its stock. As a midsized firm, Iron Age wants to avoid excessive paperwork, and the fear of being delisted in the future. The ________ provides the best fit for Iron Age's plans.

Answer 1

Answer:

Over-the-Counter market.

Explanation:

The Over-the-Counter market is a place where securities not listed on the Nasdaq, NYSE, AMEX or other exchanges are traded. The OTC market is a good option for those companies like Iron Age Metalworks which may want to avoid paperwork or do not meet the listing requirements imposed by the national exchanges. It is also important to mention that the securities traded on the OTC market are usually considered to be riskier than those traded on the national stock exchanges.

Answer 2

Answer:

The over-the-counter market provides the best fit for Iron Age's plans.

Explanation:

This market is a network of several thousand brokers who maintain contact with each other and buy and sell securities through an electronic system nationwide and it offers companies and investors a means to trade stocks that are not listed on the national stock exchanges.