SIE Exam Question 370: Answer and Explanation

Question: 370

The "third market" is a marketplace where

• A. listed securities trade in the OTC market.
• B. listed securities trade in their primary listing venue.
• C. OTC securities trade in a foreign market.
• D. OTC securities trade on a stock exchange.

Correct Answer: A

Explanation:

A - The "third market" is where exchange listed securities trade in the OTC market, typically handled by a broker-dealer through its own trading system.