Fourth market trading is direct institution-to-institution trading without using the service of
broker-dealers, thus avoiding both commissions,
and the
bid–ask spread.
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.
See also
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Primary market
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Secondary market
The secondary market, also called the aftermarket and follow on public offering, is the financial market in which previously issued financial instruments such as stock, bonds, options, and futures are bought and sold. The initial sale of ...
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Third market
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Dark pool
References
Financial markets
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