Which of the Following Is Not True About the Over-The-Counter

question 111

Multiple Choice

Which of the following is not true about the over-the-counter market?

• A) The OTC market is a network of dealers connected by phone and computer.
• B) There is no central market location.
• C) The OTC market is a network of brokers acting as agents for buyers and sellers.
• D) The OTC is by far the largest market for bond trading.

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Definitions:

Market Price

The current price at which a good or service can be bought or sold in the open market.

Strike Price

The specified price at which the holder of an option can buy or sell the underlying security.

Market Price

The current price at which an asset or service can be bought or sold in a marketplace, determined by supply and demand dynamics.

Strike Price

In options trading, the predetermined price at which the holder of the option can buy (in the case of a call option) or sell (in the case of a put option) the underlying asset.