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Describe the types of Stock Markets.

      

Describe the types of Stock Markets.

  

Answers


Kavungya
1. Organised Exchange and Over the Counter (OTC) market
This is where the buying and selling of securities is done by buyers and sellers are not present but only the agents (brokers) internet. This system is called “open outcry”.

2. Over the Counter Market (OTC)
Provides an opportunity for unlisted/unquoted firms to sell their security
Otc is usually organized by the dealers or stock brokers who buy securities themselves and then sell them.
They maintain a reasonable balance between demand and supply and observe price movements to determine profit margins on sale.
Trading may be done through telephones, computer networks, fax etc.
The dealers/participants set the treading rulesOTC specialize in securities such as corporate bonds, equity securities, Treasury bonds etc.
OTC is underdeveloped in Kenya.
Kavungya answered the question on March 12, 2019 at 05:06


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