Most bond market trading is done "over the counter" where the trades are individually arranged by a broker who puts together the seller of the bond and the buyer of the bond. Why aren’t more bonds traded in exchanges such as the New York Stock Exchange?
- For most bonds, legal restrictions require that all investors be "registered" investors to prevent ordinary people who aren't sophisticated investors from getting into bond investing.
- For most bonds, the trading is said to be "thin," meaning that days could go by and there are NO trades for that bond.
- For most stocks, legal restrictions require that all investors be "registered" investors to prevent ordinary people who aren't sophisticated investors from getting into stock investing.
- For most stocks, the trading is said to be "thin," meaning that days could go by and there are NO trades for that stock.