ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -The other method of organizing a secondary market is to have an over-the-counter (OTC) market, in which dealers at different locations who have an inventory of secu-rities stand ready to buy and sell securities “over the counter” to anyone who comes to them and is willing to accept their prices.

Detailed explanation-2: -Stock brokers are registered trading members of stock exchanges. They sell new issuance of securities to investors. They put through the buy and sell transactions of investors on stock exchanges. All secondary market transactions on stock exchanges have to be conducted through registered brokers.

Detailed explanation-3: -A stock exchange is where different financial instruments are traded, including equities, commodities, and bonds.

Detailed explanation-4: -The stock exchange is a virtual market where buyers and sellers trade in existing securities. It is a market hosted by an institute or any such government body where shares, stocks, debentures, bonds, futures, options, etc are traded. A stock exchange is a meeting place for buyers and sellers.