Support our online development, and advance our onground research initiatives in free market economics, as we seek to showcase the brightest Next-Gen minds.
THE ME-P DISCLAIMER: Posts, comments and opinions do not necessarily represent iMBA, Inc., but become our property after submission. Copyright © 2006 to-date. iMBA, Inc allows colleges, universities, medical and financial professionals and related clinics, hospitals and non-profit healthcare organizations to distribute our proprietary essays, photos, videos, audios and other documents; etc. However, please review copyright and usage information for each individual asset before submission to us, and/or placement on your publication or web site. Attestation references, citations and/or back-links are required. All other assets are property of the individual copyright holder.
On OTC and Private Transactions
By Dr. David Edward Marcinko MBA
http://www.CertifiedMedicalPlanner.org
In most cases, a market maker of a stock in the NASDAQ system must report his trade in 90 seconds, but there is another circumstance in which the trade must be reported. This is called the third market, and is defined as transactions in exchange listed securities in the OTC market.
For example, even though IBM is listed on the NYSE, an OTC market marking firm can acquire the IBM stock and begin to make a market for it just like an OTC stock. All of these trades are considered the third market, and are reported to the Consolidated Quotation System (CQS) within 90 seconds of the trade.
Fourth Market
The fourth market is defined as private transactions made directly between large investors, institutions such as banks, mutual funds, and insurance companies without the use of a securities firm.
In other words, fourth market trading is usually one institution swapping securities in its portfolio with another large institution. From the stock broker’s viewpoint, there is one problem with the fourth market.
Assessment
Since no broker/dealer is involved, no registered representative is involved and there is no commission to be earned. These trades are reported on a system called Instinet. This is advantageous to larger medial foundations or institutional investors.
Conclusion
And so, your thoughts and comments on this ME-P are appreciated. Feel free to review our top-left column, and top-right sidebar materials, links, URLs and related websites, too. Then, subscribe to the ME-P. It is fast, free and secure.
Speaker: If you need a moderator or speaker for an upcoming event, Dr. David E. Marcinko; MBA – Publisher-in-Chief of the Medical Executive-Post – is available for seminar or speaking engagements. Contact: MarcinkoAdvisors@msn.com
Share this:
Filed under: Investing | Tagged: fourth market, NASDAQ system, NYSE, OTC, stock market, third market |
The Leading Business Education Network for Doctors, Financial Advisors and Health Industry Consultants 
Is NASDAQ going to hit 5200 again?
A colleague asked me this question, recently. I remember the old days. So to answer, here is a chart:
https://www.google.com/finance?q=INDEXNASDAQ%3A.IXIC&ei=ol1kUviePJSgkwPwSA
Look at the chart from 1980 to present and you will see an artificial spike in 1999-2000 and then a crash
If you ignore the spike, the current level of 4000 is pretty reasonable as a 35 year trend. I would guess within 36 months we could see 5,000
Dr. Bill
LikeLike