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Basic Question 15 of 15
A major difference between an OTC market and an exchange is the ______.
B. transactions costs
C. degree of liquidity
D. None of the above
A. degree of automation of trades
B. transactions costs
C. degree of liquidity
D. None of the above
User Contributed Comments 7
| User | Comment |
|---|---|
| achu | "liquidity CAN be very high in both markets." I guess b/c of the word CAN, C is true. Seems like in practice there are more low liquidity items found in OTC than NYSE. But the question says ANY exchange, not the nyse. |
| sergashev | mmm, because of word CAN, C is not correct. Generally, the stock which is liquid on NYSE will be also liquid on OTC. |
| johntan1979 | Does anyone else see "CAN" in the answer choice C? |
| farhan92 | still trying to find it.. |
| Inaganti6 | how are you talking about things that you cant even see maybe you're over studying |
| davidkhang | This is getting ridiculous now... |
| maryprz14 | maybe achu is talking about trash CAN...lol (sorry just joking) |
I am happy to say that I passed! Your study notes certainly helped prepare me for what was the most difficult exam I had ever taken.
Andrea Schildbach
Learning Outcome Statements
describe types of financial intermediaries and services that they provide
CFA® 2024 Level I Curriculum, Volume 3, Module 1.