CAN YOU DIFFERENTIATE BETWEEN THE PRIMARY MARKET AND THE SECONDAY MARKET? THERE ARE QUESTIONS ON THE SIE EXAM, SO BE PREPARED

 Do you have plans to take the Securities Industry Essentials Exam (SIE)? If so, be forewarned that the SIE exam question bank includes questions on Market Structure, such as the primary market, the secondary market, the third market, and the fourth market. Make sure that you can adequately explain to yourself the differences between these four different market structures. How do we know that the SIE Exam contains questions on these Types of Markets? FINRA tells us in its SIE Content Outline in Section 1.2.1.

Bob Eder in his Study for the Securities Industry Essentials (SIE) has a full explanation of these types of markets and market structure. Here is a sample of Bob Eder's treatment:

Third Market                                     (1.2.1)

Many times shares of a stock are listed on an exchange, such as the NYSE. However, the listing on an exchange does not preclude participants in the Nasdaq market from buying the shares and re-selling them, hopefully at higher prices, on the Nasdaq market. This action is called the Third Market.

Here is the link to FINRA's Content Outline for the SIE Exam. See the references to Types of Markets and Market Structure in Section 1.2.1. 

Study for the Securities Industry Essentials (SIE) Exam is available from Amazon in both paperback and Kindle e-book versions. Here is the link to Bob Eder's book on Amazon.

For questions about Bob Eder's Study for the Securities Industry Essentials (SIE) Exam, or questions in general about the SIE exam, or about Types of Markets and Market Structure, feel free to email Bob Eder at bobeder@bobeder.net.

Bob Eder received his Juris Doctor (J.D.) degree from the University of Utah, Quinney College of Law, in 2001. See Bob Eder's Author Page on Amazon.com.

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