Organized and over-the-counter securities exchanges are similar in that they both deal with the trading of securities such as stocks and bonds. However, they are different in many ways. An organized securities exchange is defined as "A securities marketplace where purchasers and sellers regularly gather to trade securities according to the formal rules adopted by the exchange."(www.trading-glossary.com) On the other hand, a security is traded over-the-counter (OTC) if it trades in some context other than a organized exchange. The New York Stock …showed first 85 words of 1017 total…
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…showed last 85 words of 1017 total…establishes rules of conduct and protects members and investors from abuses.
In conclusion, organized and over-the-counter securities exchanges have their similarities and their differences. The organized securities exchange deals with more frequently traded securities, as opposed to the over-the counter exchange, which deals with the less often traded securities. In organized exchanges the requirements for listing stocks on the exchanges are strict, as opposed to the over-the-counter market. The New York Stock Exchange and NASDAQ were discussed, and are two examples of organized securities exchanges.
