Second tier security market; operating regulation, primary and secondary market, first tier and second tier - SS3 Commerce Past Questions and Answers - page 1

Securities not listed on major exchanges

First-tier market

Initial sale of securities by companies

First-tier market

First-tier market

One example of a second-tier security market is the Alternative Investment Market (AIM) in the United Kingdom, where smaller and growing companies can raise capital and have their securities traded.

Securities in the first-tier market, such as those listed on major exchanges, generally have higher liquidity due to a larger number of buyers and sellers. In contrast, the second-tier market may have lower liquidity as there may be fewer participants trading those securities.