Difference between Organized Exchange Market and OTC market
Constituents of Securities Market | Finance
BBA | BBA-BI | BBM | BIM | BBS
Management Notes
Difference between Organized Exchange Market and OTC market:
In Organized Exchange Market, there is a regulator through which transactions are completed.n OTC Market, there is a no regulator to carry out transactions.
Organized Exchange Market Vs OTC market
| S.No. | Organized Exchange Market | OTC (Over The Counter)Market |
| 1. | In Organized Exchange Market, there is a regulator through which transactions are completed. | In OTC Market, there is a no regulator to carry out transactions. |
| 2. | There is less chance of price manipulation in Organized Exchange Market. | There is more chance of price manipulation in OTC market because of many competing traders. |
| 3. | There is higher level of liquidity in Organized Exchange market because they have many participants and clients. | There is less liquidity in OTC market because fewer clients are willing to trade in OTC markets. |
| 4. | Organized exchange markets ensure transaction security. | OTC markets do not ensure transaction security as they are prone to fraud and dishonest traders. |
| 5. | Organized Exchange is a standard contract. | OTC contracts are customized contracts as there is no specified guarantors which increases the risk |
| 6. | Organized Exchange markets are centralized markets. | OTC markets are the decentralized markets. |
Similarly,
- Public Offering Vs Private Placement
- Traditional Financing Vs Microfinancing
- Microcredit Vs Microfinance
- Direct Finance Vs Indirect Finance
- Investment Vs Speculation
- CML VS SML
- Public Limited Company Vs Private Limited Company
- Warrant Vs Convertibles
- Open Ended Vs Close Ended Mutual Funds
- Nominal Vs Real Interest Rate
- ROA Vs ROE
You may like:
(Founder of Management Notes)
MBA,BBA.
I am Smirti Bam, an enthusiastic edu blogger with a passion for sharing insights into the dynamic world of business and management through this website.
I hold a MBA degree from Presidential Business School, Kathmandu, and a BBA degree with a specialization in Finance from Apex College,
MBA,BBA.
I am Smirti Bam, an enthusiastic edu blogger with a passion for sharing insights into the dynamic world of business and management through this website.
I hold a MBA degree from Presidential Business School, Kathmandu, and a BBA degree with a specialization in Finance from Apex College,
Latest posts by Smirti (see all)
- As part of the consent process, the federal regulations require researchers to: - September 8, 2024
- Concept and Nature of Intellectual Property Rights – Explained in Detail | Business Law - January 30, 2024
- Management Information Systems Online Degree – Courses, Colleges, and Careers in MIS - January 16, 2024
Very useful, thank you for keeping us all up to date on your trading development.
Great info. Lucky me I ran across your blog by chance (stumbleupon).
I have saved it for later!
I am just delighted with your thoughtful approach, let’s
connect some point.
Greetings, I think your site could be having web browser
compatibility problems. Whenever I look at your blog in Safari, it looks fine however,
when opening in I.E., it’s got some overlapping issues.
I merely wanted to give you a quick heads up! Aside from that,
fantastic site!
Many thanks for this, I’ll undoubtedly share it with my favorite readership.
Much appreciated material .helpful in my academic excellence since I am a finalist of MBA FINANCE.