A market in which securities are bought and sold over the counter in which dealers act as principals when buying and selling securities for clients. Also referred to as the unlisted market.

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This question tests your understanding of the over‑the‑counter dealer market, where trading happens directly with market makers. In this market, dealers hold inventories and act as principals, buying and selling securities for their own accounts rather than merely matching buyers and sellers. Because the securities aren’t listed on a formal exchange, this is often called the unlisted market. The primary market involves new issues, not trading existing securities. The secondary market covers trades of existing securities, but the defining feature here is the OTC, dealer‑based structure rather than an organized exchange. An electronic market is simply a trading platform and doesn’t by itself define the unlisted, dealer‑driven setup.