Fourth market

Fourth market trading is direct institution-to-institution trading without using the service of broker-dealers, thus avoiding both commissions,[1] and the bid-ask spread.[2] 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.

References

"Fourth market". NASDAQ. Retrieved 26 March 2018.
"How Securities are Traded". Gulf Base. Retrieved 26 March 2018.

Financial markets
Types of markets	Primary market Secondary market Third market Fourth market
Types of stocks	Common stock Golden share Preferred stock Restricted stock Tracking stock
Share capital	Authorised capital Issued shares Shares outstanding Treasury stock
Participants	Broker-dealer Day trader Floor broker Floor trader Investor Market maker Proprietary trader Quantitative analyst Financial law Regulator Stock trader
Exchanges	Electronic communication network List of stock exchanges Trading hours Multilateral trading facility Over-the-counter
Stock valuation	Alpha Arbitrage pricing theory Beta Bid–ask spread Book value Capital asset pricing model Capital market line Dividend discount model Dividend yield Earnings per share Earnings yield Net asset value Security characteristic line Security market line T-model
Trading theories and strategies	Algorithmic trading Buy and hold Contrarian investing Day trading Dollar cost averaging Efficient-market hypothesis Fundamental analysis Growth stock Market timing Modern portfolio theory Momentum investing Mosaic theory Pairs trade Post-modern portfolio theory Random walk hypothesis Sector rotation Style investing Swing trading Technical analysis Trend following Value averaging Value investing
Related terms	Block trade Cross listing Dark pool Dividend Dual-listed company DuPont analysis Efficient frontier Flight-to-quality Government bond Haircut Initial public offering Long Margin Market anomaly Market capitalization Market depth Market manipulation Market trend Mean reversion Momentum Open outcry Position Public float Public offering Rally Returns-based style analysis Reverse stock split Share repurchase Short selling Slippage Speculation Stock dilution Stock exchange Stock market index Stock split Trade Uptick rule Volatility Voting interest Yield

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Fourth market

See also

References