What is the third market?

The third markets are financial markets on which are securities for the counter investors who are not listed on the stock exchange. The third market, which is also known as the SPC (OTC), was traditionally used as a means of trading large shares between institutions. However, this has changed because more individual investors have begun to explore the third market transactions by investing and trading online.

Maximization of profits

In the past, the third market was an ideal arena for the purchase and sale of investment as a means of financing corporate pension funds or to ensure large shares blocks for use by investment companies or companies with securities. This securities trading took place outside the markets such as the US Stock Exchange or the New York Stock Exchange, so the movement would be more or less transparent for smaller investors. Transactions made through the third market access could be and at the same time could be accommodation quickly and easily and allow buyingto the seller maximize profits obtained from transactions.

Inflow of individual investors

Although it was once a province of institutional investors, the third market has seen an increase in the active presence of individual investors. This phenomenon can be attributed to the arrival of the Internet. At the beginning of the 1990s and continuing to the 21st century, online trading opened a brand new world for investors trading on behalf of a larger institution. These investors have found that the use of the third market trading is fast, offers excellent diversity and allows more anonymity than trading on the stock market.

Another advantage for trading in the third market is related to the cost of work through a broker. Transactions on the third market can be made directly by the investor, so there are no broken voice to be paid. Although many online business sites charge a transaction fee, it is usually manym lower than a standard broker fee. The final result is that the investor pays less for making an order, which can be a very attractive advantage for many investors.

experience often necessary

At the same time, the third market is not a good place for newcomers. Persons who are new investments would focus well on trading through brokerage. After the new investor has become a more proficient projection and investment evaluation, the third market becomes a more feasible option for investing.