In the world of finance, securities trade either on exchanges or in the over-the-counter (OTC) markets. Corporate debt like bonds almost exclusively trades in the OTC markets, which means they do not trade on exchanges. Exchanges are centralized locations where investors trade securities, like the New York Stock Exchange (NYSE). A small number of corporate bonds do trade on the NYSE. If a transaction occurred there, it would be considered an exchange trade, not an OTC trade.
Some corporate bond investors aim to buy at low prices and sell at higher prices in the market (although many bond investors simply buy and hold to maturity). While the reasons for market price changes is largely dependent on interest rates, the demand for a corporate bond ultimately decides its market price.
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