Definition of Fourth Market

Fourth market consists of transactions between two large institutions, without the use of a broker dealer.

Applying "Fourth Market" to Securities Exams:

The fourth market has developed to allow large sophisticated investors to trade directly with each other. INSTINET was the first computerized facility to allow these transactions to take place. As technology has advanced many additional facilities have been developed and the fourth market has become more fragmented.

Preparing for an Exam?

Receive 15% off all your Securities Exam Prep materials

Please wait....

Your Cart