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).

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