organized markets
trade markets
counter markets
bond markets
Answer is Right!
Answer is Wrong!
The correct answer is C. counter markets.
An over-the-counter (OTC) market is a decentralized market where financial instruments are traded directly between two parties, without going through an exchange. This is in contrast to an organized exchange, where buyers and sellers meet in a central location to trade securities.
OTC markets are often used for trading illiquid securities, such as bonds. This is because OTC markets are more flexible than organized exchanges, and they can accommodate smaller trades.
Here is a brief explanation of each option:
- Organized markets: Organized markets are centralized markets where buyers and sellers meet to trade securities. The most common type of organized market is a stock exchange. Stock exchanges are regulated by governments and they have rules that must be followed by all participants.
- Trade markets: Trade markets are similar to organized markets, but they are not regulated by governments. This means that there are fewer rules and regulations governing trade in trade markets.
- Bond markets: Bond markets are markets where bonds are traded. Bonds are loans that are issued by governments, corporations, and other institutions. Investors buy bonds in the hope of earning interest on their investment.