What Is the Difference Between Third and Fourth Markets

question 164

Multiple Choice

What is the difference between third and fourth markets?

• A) A third market involves trading exchange-listed securities in OTC markets, while a fourth market trading involves institution-to-institution trading without using the services of
• Brokers or dealers.
• B) A third market involves trading institution-to-institution trading without using the services of brokers or dealers trading, while a fourth market involves trading exchange-listed
• Securities in OTC markets.
• C) A third market involves trading in corporate equities, while a fourth market involves trading in corporate debt.
• D) A third market involves trading in corporate debt, while a fourth market involves trading in corporate equities.
• E) A third market involves trading in call options, while a fourth market involves trading in warrants.

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Definitions:

Invisible Hand

A concept introduced by Adam Smith to describe the self-regulating nature of the market economy.

Economist

A professional who studies the production, distribution, and consumption of goods and services.

Economic Activity

Activities related to the creation, distribution, and use of goods and services in an economic system.

Market Economy

An economic system in which economic decisions and the pricing of goods and services are guided solely by the interactions of citizens and businesses.