Series 66: 6.1.2 Negotiated Market

6.1.2  Negotiated Market

The negotiated market refers to the decentralized buying and selling of securities without one central market maker. The negotiated market includes both over-the-counter securities and the Nasdaq. Instead of a physical place with a single market maker, the negotiated market consists of electronic systems connecting multiple market makers who post competing bid and ask prices online. Orders are filled either automatically, with the computer matching the best quotes first, or by private negotiation. The negotiated market is composed of exchange-listed securities that trade on the Nasdaq stock exchange and securities that trade on over-the-counter markets, such as the Pink Sheets (now called OTC Link).

Nasdaq, the second largest stock exchange in the world by market capitalization, is a hybrid market that trades in bot