Carl is a dealer who trades small stocks and illiquid bank stocks using his computer. He trades with other dealers all over the

Question

3 years ago

5

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

Business

1 answer:

Makovka662 [10] · Answer 1 · 2022-05-03T20:45:41+03:00

Answer:

C) over-the-counter markets

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.