Secondary market organise exchanges-over the counter markets, Financial Management

Assignment Help:

How can secondary market organised the exchanges and over the counter markets?

Exchanges and over-the-counter (OTC) markets:

Secondary markets can be organised by exchanges or over the counter (OTC) markets.

• In exchanges, buyers and sellers (by their brokers) transact into one central location to conduct trades. Illustrations are the New York Stock Exchange (NYSE) that recently obtained the American Stock Exchange (AMEX) and the London Stock Exchange (LSE).

• In over-the-counter markets, dealers at various locations have an inventory of securities, and they are ready to buy and sell such securities ‘over-the-counter’ to anyone willing to admit their price. Due to the technological links among dealers regarding prices, over the counter markets are competitive and not extremely diverse from organised exchanges. Over the counter trading is most important into the USA, where needs for listing stocks onto the exchanges are rather strict. Illustrations of over the counter markets are: the US government bond market and NASDAQ stands for National Association of Securities Dealers Automated Quotation System stock exchange. The national association of securities dealers automated quotation system is the second largest US market. Usually, this used to be a pure dealer market.


Related Discussions:- Secondary market organise exchanges-over the counter markets

Guaranteed income supplement, In addition to the public pension plans, Rob ...

In addition to the public pension plans, Rob and Ellen also have RRSPs.  What options will they have when they retire if they want to draw money from their RRSPs?  Identify one str

Non-agency mortgage backed securities, The mortgage-backed securiti...

The mortgage-backed securities dealt with till now are agency mortgage backed securities. There are other MBS which can be for any kind of real estate property.

Show the accountable plan, Q. Show the Accountable Plan? Accountable P...

Q. Show the Accountable Plan? Accountable Plan - An accountable plan is any reimbursement or other expense allowancearrangement of an employer which meets all of the subseque

Brixton plans to sell the applicable computer, Brixton Products is consider...

Brixton Products is considering the purchase of a new $520,000 computer-based entry order system.  The cost of the system will be depreciated on a straight-line basis over its five

What is the matching principle of working capital financing, What is the ma...

What is the matching principle of working capital financing?  What are the benefits of following this principle? The matching principle is while short-term financing is used fo

Case study - japanese loans and forwards, Japanese banks borrow in yen and ...

Japanese banks borrow in yen and purchase spot dollars from their Western counterparties. Therefore the Western banks are left holding the yen for the time of the loan (three month

Baumol sales max theory, critically appraise baumol max. theory as an alter...

critically appraise baumol max. theory as an alternative objective of the firm

Cost of capital, ABC Ltd. Produces electronic components with a selling pri...

ABC Ltd. Produces electronic components with a selling price per of Rs.100. Fixed cost amount to Rs.2,00,000/- 5000 units are produced and sold each year. Annual profits amount to

Finance, #qSeven years ago, after 15 years in public accounting, Stanley Bo...

#qSeven years ago, after 15 years in public accounting, Stanley Booker, CPA, resigned his posiition as Manager of Cost Systems for Davis, Cohen, and O''''''''Brien Public Accountan

Illustrate miller-orr model recognises, Q. Illustrate Miller-Orr model reco...

Q. Illustrate Miller-Orr model recognises? The Miller-Orr model recognises which cash balance requirements are likely to fluctuate and that active management is required in r

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd