Please explain this to me…it’s almost pretty simple, but I tend to get this type of question wrong. Explain: the first market second market third market fourth market I always mix the third market with the fourth market.
Primary Market. Secondary where the issue is sold after it is first made public (i guess). NYSE and Nasdaq. OTC markets using the brokers and large institutional folks. Direct trades with other partners, large blocks of shares and no brokers. The third market mainly focuses on using brokers and the large institutional guys. Thats how I usually distinct the two. Goal of the fourth market is to avoid large brokeage fees.
I don’t have my notes handy, but off the cuff my understanding is: 1st Market : Large national stock exchanges (NYSE/AMEX/NASDAQ/TSX) 2nd Market : Regional stock exchanges 3rd Market : Brokered transactions away from the exchange (I think this includes OTC) 4th Market : Large institutions trade securities directly without the aid of a broker
Adehbone - don’t mix up 1st market & 2nd market with primary market and secondary market (two different classifications)