The Difference Between an Organized Exchange and an Over-The-Counter Market

question 302

Multiple Choice

The difference between an organized exchange and an over-the-counter market is that the transactions that occur on an organized exchange ________ and the over-the-counter transactions ________.

• A)are initial offerings;are seasoned issues
• B)are seasoned issues;are initial offerings
• C)take place in a physical building;are conducted over the phone or via a computer
• D)are conducted over the phone or via a computer;take place in a physical building
• E)are initial offerings;are conducted over the phone

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Definitions:

Domestic Producers

Refers to manufacturers and suppliers that create goods and services within a country's borders, contributing to its economy.

Domestic Consumers

Individuals or households within a country that purchase goods and services for personal use, as opposed to businesses or foreign buyers.

Tariff

A tax imposed by a government on imported goods or services to protect domestic industries or generate revenue.

Infant Industry

A new or emerging industry that may be protected by the government from international competition to allow it to grow.