Secondary Market
Trading of NYSE-listed securities in the over-the-counter market is known as:
Third market trading refers to exchange-listed securities trading in the OTC market. First market is exchange trading, second market is OTC trading of OTC securities, and fourth market is direct institution-to-institutio
Complete Analysis & Legal Rationale
Third market trading refers to exchange-listed securities trading in the OTC market. First market is exchange trading, second market is OTC trading of OTC securities, and fourth market is direct institution-to-institution trading without intermediaries.
Distractor Autopsy (Why Other Options Are Traps)
FINRA exam writers design incorrect distractors using specific calculation mistakes and regulatory misconceptions. Review why each option succeeds or fails:
Does not match the governing securities rule described in the explanation.
Does not match the governing securities rule described in the explanation.
Matches the verified teaching point in the explanation.
Does not match the governing securities rule described in the explanation.
Official Standard: Secondary-market / antifraud framework including Section 10(b) (verify current text).
Official Standard: Outline-level citation: item maps to Series 7 topic coverage. Prefer a specific FINRA/SEC/MSRB rule citation in a later author pass.