Definition
Like stocks, after issuance in the primary market, bonds are traded between investors in the secondary market. However, unlike stocks, most bonds are not traded in the secondary market via exchanges. Rather, bonds are traded over-the-counter (OTC). There are several reasons why most bonds are traded OTC, but chief among them is their diversity. Key Takeaways Unlike shares of a company that trade o
In Panel Profits
In the Panel Profits market platform, Why Are Most Bonds Traded on the Secondary Market "Over the Counter"? applies standard equities & market mechanics principles to comic assets and physical collections. Trading volume and liquidity spreads reflect secondary market dealer and auction transactions.
Common mistakes
Do not infer unobserved prices.