Q:
The popular trading system "Instinet" is situated in which of the following markets?

a) Secondary Market
b) Forth Market
c) Third Market
d) Primary Market
e) All of these are false

A:

The correct answer is b

The fourth market is the direct trading of stocks by the institutional investors to avoid brokerage commissions. It is a trading system used by institutions to trade amongst themselves.
The third market is trading by nonexchange-member brokers/dealers and institutional investors of exchange-listed stocks. In other words, the third market is exchange-listed securities trading in the OTC market.
The secondary market is a market in which an investor purchases an asset from another investor rather than an issuing corporation. An example is the NYSE.
The primary market is where investors have the first opportunity to buy a newly issued security (like an IPO).

Have a Financial Question?

RELATED FAQS

  1. What's the difference between primary and secondary capital markets?

    Learn how in the primary capital market, securities are issued for the first time, while in the secondary market, investors ...
  2. What is the difference between a primary and secondary financial market?

    Learn about primary and secondary financial markets, how investors use these markets and the difference between primary and ...
  3. What is the average range for the price-to-earnings ratio in the electronics sector?

    Understand the difference between the primary market and the secondary market, and learn which investors are able to participate ...
  4. Who trades in primary and secondary capital markets?

    Understand how primary and secondary markets function in the trade of financial securities between investors, and learn how ...
  5. When does a primary market become a secondary market?

    Understand the difference between the primary and secondary markets and why the secondary market is where investors go to ...
RELATED TERMS
  1. Third Market

    Trading by non exchange-member brokers/dealers and institutional ...
  2. Instinet

    A global financial securities company that operates an electronic ...
  3. Fourth Market

    The trading of exchange-listed securities between institutions ...
  4. Secondary Market

    A market where investors purchase securities or assets from other ...
  5. Limit Order Information System - LOIS

    An electronic system used by specialists in the stock market. ...
  6. Capital Markets

    Capital markets are markets for buying and selling equity and ...
Hot Definitions
  1. Initial Public Offering - IPO

    The first sale of stock by a private company to the public. IPOs are often issued by smaller, younger companies seeking the ...
  2. Border Adjustment Tax

    A tax levied on goods based on where they are sold – exported goods are exempt from tax; those imported and sold in the ...
  3. Profit and Loss Statement (P&L)

    A financial statement that summarizes the revenues, costs and expenses incurred during a specified period of time, usually ...
  4. Blind Trust

    A trust in which the trustees have full discretion over the assets, and the trust beneficiaries have no knowledge of the ...
  5. Job Openings and Labor Turnover Survey - JOLTS

    A survey done by the United States Bureau of Labor Statistics to help measure job vacancies. It collects data from employers ...
  6. Standard Deviation

    1. A measure of the dispersion of a set of data from its mean. The more spread apart the data, the higher the deviation. ...
Trading Center