1. Organised Exchange and Over the Counter (OTC) market

This is where the buying and selling of securities is done by buyers and sellers are not present but only the agents (brokers) internet. This system is called “open outcry”.

 2. Over the Counter Market (OTC)

Provides an opportunity for unlisted/unquoted firms to sell their security

Otc is usually organized by the dealers or stock brokers who buy securities themselves and then sell them.

They maintain a reasonable balance between demand and supply and observe price movements to determine profit margins on sale.

Trading may be done through telephones, computer networks, fax etc.

The dealers/participants set the treading rulesOTC specialize in securities such as corporate bonds, equity securities, Treasury bonds etc.