fourth market



Fourth market trading is direct institution-to-institution trading without using the service of
broker-dealer In financial services, a broker-dealer is a natural person, company (law), company or other organization that engages in the business of trading security (finance), securities for its own account or on behalf of its customers. Broker-dealers are a ...
s, thus avoiding both commissions, and the
bid–ask spread The bid–ask spread (also bid–offer or bid/ask and buy/sell in the case of a market maker) is the difference between the prices quoted (either by a single market maker or in a limit order book) for an immediate sale ( ask) and an immediate ...
. Trades are usually done in blocks. It is impossible to estimate the volume of fourth market activity because trades are not subject to reporting requirements. Studies have suggested that several million shares are traded per day.

See also

Primary market :''"Primary market" may also refer to Art valuation#Primary and secondary markets, 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 i ...
Secondary market The secondary market, also called the aftermarket and follow on public offering, is the financial markets, financial market in which previously issued financial instruments such as stock, Bond (finance), bonds, option (finance), options, and Fut ...
Third market 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 (economics), production, Distribution (economics), distribution, and Consumption ...
* Dark pool


Financial markets {{Econ-stub