The popular trading system "Instinet" is situated in which of the following markets ...

By Investopedia Staff AAA
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. Which of the following statements is (are) true with respect to the calculation of ...

    The correct answer is: a) (I) is incorrect because results that cover a period of less than a year must "not" be annualized. ...
  2. Which of the following terms are associated with the purchase/redemption of open-end ...

    The correct answer is b. Forward pricing is the SEC Rule that requires all transactions in open-end investment company shares ...
  3. Joanne Bume, CFA, is the head of research at large brokerage firm ...

    The correct answer is: a) The proper course of action would simply be to place Universal Airlines on a restricted list until ...
  4. A registered representative has been following PDQ stock in the market over the past ...

    The correct answer is c. Current yield compares the current price of acquiring the stock to the income from the stock, the ...
RELATED TERMS
  1. Series 79

    A examination to ensure a candidate is qualified to become a ...
  2. Research Analyst

    A person who prepares investigative reports on equity securities. ...
  3. Series 34

    An exam required for individuals seeking to engage in off-exchange ...
  4. Financial Advisor

    One who provides financial advice or guidance to customers for ...
  5. Series 23

    An exam offered by the Financial Industry Regulatory Authority ...
  6. Series 28

    An exam given by the Financial Industry Regulatory Authority ...

You May Also Like

Related Articles
  1. Insurance

    Municipal Bond Tips For The Series 7 ...

  2. Retirement

    6 Proven Tips For Series 6 Success

  3. Insurance

    Tips For Passing The Series 6 Exam

  4. Professionals

    Banker Or Broker: Which Career Is Right ...

  5. Professionals

    Breaking Down Financial Securities Licenses

Trading Center