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In finance, third market is the trading of exchange-listed securities in the over-the-counter (OTC) market. These trades allow institutional investors to trade blocks of securities directly, rather than through an exchange, providing liquidity and anonymity to buyers.
Aug 29, 2021 · Third market makers deal in a market segment in which exchange-traded securities are exchanged over-the-counter (OTC) by institutional investors. more Primary...
Nov 19, 2023 · Key Highlights. In the third market, exchange-listed securities are traded by investors outside centralized exchanges, using a network of broker-dealers and institutional investors. Institutional investors, including investment firms and pension plans, are commonly involved in the third market, as are traders in over-the-counter markets.
Mar 14, 2024 · Last updated 03/14/2024 by. Alessandra Nicole. Edited by. Fact checked by. Summary: Third market makers play a crucial role in the financial landscape by facilitating the trading of securities in the over-the-counter (OTC) market among institutional investors.
Jun 18, 2021 · What is The Third Market? The third market can be difficult for new investors to understand. It functions as a combination between the secondary market and the OTC market. That is to say, exchange-listed securities trade over-the-counter. Why? To cut out the middle man.
Nov 17, 2023 · Third market making refers to the practice of executing trades in listed securities outside of the primary exchange where they are listed. Typically, these trades take place in the over-the-counter (OTC) market, where broker-dealers act as intermediaries between buyers and sellers.
The third market is a marketplace or scene wherein brokers and institutional investors, like fund managers, can trade securities that are exchange-listed and are generally traded on a proper exchange like the NYSE.
