--%>

How are financial trades made in an over the counter market

How are financial trades made in an over the counter market?
On the contrary to the organized exchanges that have physical locations, the over the counter market contain no fixed location, or more accurately, it is everywhere. The over the counter market, or OTC, is network of dealers about the world who maintain inventories of securities for sale. If you desired to buy a security i.e. traded OTC, you would call your broker, who would then shop amongst competing dealers who contain the security in their inventory. After locating the dealer along with the best price, your broker would buy the security on your behalf.

   Related Questions in Finance Basics

  • Q : Influence of working capital in the

    How and why does working capital influence the incremental cash flow estimation for a proposed large capital budgeting project? Describe. Several large projects need additional working capital. This investment in additional working capital bec

  • Q : Which ratios would banker is interested

    Which ratios would banker is most interested while assuming whether to approve an application for short-term business loan? Illustrate.Bankers and other lenders employ liquidity ratios to distinguish whether to extend short-term credit to a firm

  • Q : How societys interests can affect

    Normal 0 false false

  • Q : Describe significance of excess reserves

    Normal 0 false false

  • Q : Explain Overhead Overhead : Those

    Overhead: Those elements of cost essential in the production of an article or the performance of a service that are of such a nature which the amount applicable to the product or service can’t be determined directly. Generally they relate to tho

  • Q : What is Reverted Appropriation Reverted

    Reverted Appropriation: An appropriation which is reverted to its fund source after the date its liquidation period has terminated.

  • Q : Define Allocation Allocation : The

    Allocation: The distribution of funds or costs from one account or misuse to one or more accounts or appropriations (example, the allocation of employee compensation funding from the statewide 9800 Budget Act items to the departmental Budget Act items

  • Q : What is in store for banking

    What is in store for banking consolidation? Merger activity is a natural procedure by which companies make themselves more efficient and better capable to compete for customers. The banking industry is no exception

  • Q : Describe NAFTA Normal 0 false false

    Normal 0 false false

  • Q : Compare and contrast the potential

    Normal 0 false false