14. Describe and define the 4 diverse security markets.
15. what has happened to transactions costs of trades inter temporally? Is your money safe in a broker dealer?
14. The four types of diverse security markets are :
(i) Order Driven Markets : An order driven market is one wherein the buyer places an order with the seller for a specified quantity of securities at an agreed rate.
(ii) Quote Driven Markets : A quote driven market is where the buyers and sellers quote bids and asks for the securities that are traded. It is more like a spot market.
(iii) Brokered Market : In a brokered market, there is a agent or an intermediary who help the buyer and sellers in trading of securities i.e. to find a suitable buyer/ seller for a particular rate and quantity.
(iv) Hybrid Market : It is a mix of order driven and quote driven markets. It derives features of both bid and ask and orders.
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