Is the second board market (GEM) an on-site transaction or an off-site transaction?

The second board market basically adopts over-the-counter trading. OTC generally refers to the primary market, which is a mutual transaction between enterprises.

1. OTC trading is relative to stock exchange trading. Any stock trading activity outside the stock exchange can be called OTC trading. Because this kind of transaction was mainly carried out on the counters of various securities companies at first, it is also called over-the-counter trading. Compared with the stock exchange, there is no fixed centralized place in the OTC market, but it is scattered all over the country, and the scale is large and small, and dealers organize transactions; Over-the-counter market may not implement public bidding, and its price is reached through consultation; Compared with listing on the stock exchange, the supervision of OTC is less, more flexible and more convenient.

2. From the organizational form of transactions, the capital market can be divided into exchange market and OTC market. OTC market is relative to the exchange market, and it is a market for securities trading outside the stock exchange. The physical concepts of traditional on-site market and off-site market are: the transactions in the exchange market are concentrated in the trading hall; The over-the-counter market, also known as "OTC market" or "OTC market", is a market scattered over the counters of securities companies, and there is no centralized trading place and unified trading system. However, with the development of information technology, the way of securities trading has gradually evolved into collecting orders through network system, and then processing them through electronic trading system, and the physical boundary between on-site and off-site is gradually blurred.

3. At present, the concept of on-site and off-site has evolved into the concept of risk stratification management, that is, different levels of markets make differentiated arrangements for listing or listing conditions, information disclosure system, transaction settlement system, securities product design, investor constraints, etc. according to the risks of listed products, so as to realize vertical stratification of product risks in the capital market.

(1) OTC market is a decentralized intangible market. There is no fixed centralized trading place, but a number of independent securities institutions conduct transactions, mainly through telephone, telegraph, fax and computer networks.

(2) The OTC market is organized by the market maker system. The difference between OTC market and stock exchange is that the brokerage system is not adopted, and investors directly trade with brokers.

(3) OTC market is a market with a wide variety of securities and securities institutions, mainly stocks and bonds that have not been approved for listing on the stock exchange. Due to the variety of securities, each securities institution only deals in several kinds of securities on a fixed basis.