What Is a Third Market?

The third market refers to the securities exchange market that is exclusively traded off the stock exchange and has been listed on the stock exchange. In fact, the third market is part of the over-the-counter market, but since this part of the market has developed rapidly in recent years, the types of bonds and the volume of transactions have increased rapidly, so many people are used to using it as an independent market. ^[1]

Tertiary market

The third market is a market formed by non-exchange members engaging in a large number of stocks listed on the exchange outside the exchange. In other words, it is listed but in

The main customers of the third market are institutional (group) investors, such as the Bank Trust Department, pension fund organizations, and other large investment institutions. In addition, smaller brokers and securities dealers who are not members of the exchange are also active clients. They can buy listed securities in this market and sell them to others to get a certain commission. Private investors sometimes do securities transactions in the third market, but the transaction volume is not large.

1. The emergence of the third market not only enables participants to reduce costs and obtain benefits from it, but also has a positive impact on promoting the further development of the stock market, making listed stocks appear in a multi-level market, thereby strengthening the securities business competition.

2. It not only increases the opportunities and channels for listed stock trading, expands the width and liquidity of the market, but also promotes stock exchanges to reduce service fees and provide better services.

3. Prospered the stock market.