Traders refer to OTC transactions in exchange-listed securities as which of the following?

Traders refer to OTC transactions in exchange-listed securities as the Third Market, which encompasses trading of those securities outside of the traditional exchange environment, such as the NYSE or NASDAQ. The Third Market enables institutional and professional traders to buy and sell listed securities directly among themselves in the OTC market, improving liquidity and providing an alternative for executing large orders without significantly impacting the market price.

This concept is essential in understanding how markets function beyond standard exchanges, offering greater flexibility and potential cost savings in trading. Practitioners should recognize the Third Market as a crucial part of the overall trading landscape, especially for institutional investors looking to navigate large trades more discreetly.