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Hi sir,
1. Is the over the counter market a secondary market?
2. Over the counter market will involve in any issue of securities?
I asking this as i saw 1 part in bpp textbook
Securities that are issued in an over the counter market can be negotiable or non-negotiable.Negotiable securities can be resold.
Non-negotiable securities cannot be resold.
Part in issues makes me confuse.
Thank you.
As far as the exam in concerned, the answer to both points is ‘no’!
In some circumstances OTC arrangements can be sold on (i.e. are negotiable) but this is not relevant for the exam.
OTC is only relevant in the exam in regard to dealing with interest rate risk (for example, FRA’s and IRG’s) and this is all explained in my free lectures (watched together with our free lecture notes) on this.
The lectures are a complete free course for Paper FM and cover everything needed to be able to pass the exam well.
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