In
finance
Finance is the study and discipline of money, currency and capital assets. It is related to, but not synonymous with economics, the study of production, distribution, and consumption of money, assets, goods and services (the discipline of fin ...
, third market is the trading of
exchange-listed securities
A security is a tradable financial asset. The term commonly refers to any form of financial instrument, but its legal definition varies by jurisdiction. In some countries and languages people commonly use the term "security" to refer to any for ...
in the
over-the-counter (OTC) market. These trades allow
institutional investors
An institutional investor is an entity which pools money to purchase securities, real property, and other investment assets or originate loans. Institutional investors include commercial banks, central banks, credit unions, government-linked ...
to trade blocks of securities directly, rather than through an exchange, providing liquidity and anonymity to buyers.
Third market trading was pioneered in the 1960s by firms such as
Jefferies & Company although today there are a number of brokerage firms focused on third market trading, and more recently
dark pools.
Boyd L. Jefferies Dies at 70; Headed Institutional Broker
New York Times, August 25, 2001
See also
*Primary market :''"Primary market" may also refer to a market in art valuation.''
The primary market is the part of the capital market that deals with the issuance and sale of securities to purchasers directly by the issuer, with the issuer being paid the proce ...
*Secondary market
The secondary market, also called the aftermarket and follow on public offering, is the financial market in which previously issued financial instruments such as stock, bonds, options, and futures are bought and sold. The initial sale of the ...
* Fourth market
* Private equity secondary market
* OTC Markets Group
References
Financial markets
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