What type of secondary market is characterized by buyers and sellers seeking each other directly?

Disable ads (and more) with a premium pass for a one time $4.99 payment

Study for the Arizona State University Fin300 Final Exam. Prepare with multiple choice questions, each question comes with detailed hints and explanations. Get ready for your finance fundamentals exam!

The type of secondary market characterized by buyers and sellers seeking each other directly is known as a Direct Search market. In this type of market, participants engage in transactions without the intermediation of brokers or dealers. This often involves individuals or entities actively looking for counterparties for their trades rather than listing their interests on an exchange.

In a Direct Search market, the process can be more informal and may take place in various environments, such as through personal contacts, online platforms, or social interactions. This market structure can efficiently match buyers with sellers when there is a limited number of participants or specific needs that require direct contact.

Understanding this concept is essential in recognizing how different market structures operate based on the level of intermediation involved and the characteristics of participant engagement. Other market types involve more structured processes with intermediaries facilitating transactions, contrasting sharply with the direct contact method seen in a Direct Search market.

Subscribe

Get the latest from Examzify

You can unsubscribe at any time. Read our privacy policy