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Over-the-counter (OTC) markets are decentralized platforms where financial instruments are traded directly between two parties without a central exchange or broker, allowing for greater flexibility and less regulation. In contrast, organized exchanges are centralized marketplaces where securities are listed and traded under strict regulations, providing transparency and standardized processes. OTC markets often deal with less liquid assets and derivatives, while organized exchanges facilitate trading of publicly listed stocks and bonds. This difference in structure can lead to varying levels of risk, liquidity, and pricing efficiency.

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6d ago

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What is the difference between organized exchanges and over-the-counter markets?

The difference between Exchanges and Over-the-Counter Markets is that in an exchange markets buyers and sellers meet in one central location to conduct trades and in an over the counter market buyers and sellers in different location that are ready to buy or sell over the counter to any one who comes up and are willing to pay the price.


What is history of exchange traded option and over the counter optios?

The history of exchange traded option and over the counter option is that they were not traded in secondary markets.


How does otcei work?

This is over the counter exchange of India .This is an exchange system comprised of small and large businesses to gain access to capital markets.


What purpose do exchange markets serve?

Exchange markets provide organized trading facilities for stocks, bonds, and/or options. These facilities act as auction houses, where securities brokers and dealers essentially bid for securities.


Differences of OTC Market and organized markets?

different between otc market and orgnized market?


What does it mean to be publicly listed?

A publicly listed, or traded, company is one organized with shares of stock available for purchase on stock exchanges or over-the-counter markets.


What determines the exchange rates?

Foreign exchange markets


Difference between otc market and primary market?

OTC Markets (over-the-counter) are basically penny stocks and they operate on the OTC exchange. If you're looking for micro cap stocks that's the exchange they're at. Primary markets basically house small to large cap stocks that have long passed the micro cap stage.


What is financial dualism and control of interest rates.?

split of LDC;s markets into organized and unorganized markets


What is the stock ticker of Uniqlo?

Its ticker symbol is 9983 on the Tokyo Stock Exchange which is sometimes listed as TYO:9983. It's also traded over-the-counter in the US markets as FRCOF and FRCOY.


What are some characteristics of the foreign exchange spot markets?

The spot market or cash market is a public financial market in which financial instruments or commodities are traded for immediate delivery. It contrasts with a futures market, in which delivery is due at a later date. In spot market, settlement happens in t+2 working days, i.e., delivery of cash and commodity must be done after two working days of the trade date. A spot market can be:an organized market;an exchange; orover-the-counter (OTC)Spot markets can operate wherever the infrastructure exists to conduct the transaction


What is the goal of the SEC?

The SEC was organized under the Securities Exchange Act of 1934 to create fair market conditions in the securities markets by setting standards for and requirements of information from the issuer of the security to the general public.