SIE Exam Question 527: Answer and Explanation

Question: 527

Which of the following refers to the trading of exchange-listed securities in the over-the-counter market? These trades allow institutional investors to trade blocks of securities directly, rather than through an exchange, providing liquidity and anonymity to buyers.

• A. First market
• B. Second market
• C. Third market
• D. Fourth market

Correct Answer: C

Explanation:

Third market refers to the trading of exchange-listed securities in the over-the-counter market. These trades allow institutional investors to trade blocks of securities directly, rather than through an exchange, providing liquidity and anonymity to buyers.