Secondary markets allow investors to trade securities that have already been issued, such as stocks, bonds, and other financial instruments. Securities are traded on stock exchanges like the Bombay Stock Exchange, National Stock Exchange, and Over The Counter Exchange of India. Secondary markets provide liquidity to investors, allow the public to participate in capital formation, and help establish the fair market price of securities through constant trading. They are an important part of capital markets.
4. There are aaccttuuaallllyy ttwwoo lleevveellss ooff
tthhee ccaappiittaall mmaarrkkeettss iinn wwhhiicchh
iinnvveessttoorrss ppaarrttiicciippaattee::
Primary Markets
Secondary Markets
5. SSEECCOONNDDAARRYY
MMAARRKKEETT
Secondary market means market for
purchase and sale of second hand
securities.
Securities once sold can be resold to
others through stock brokers.
Also called After Market.
6. It is a organized market where
securities issued by- Companies,
Government, Semi Government
Institutions and Public bodies are
traded.
These securities are traded in
the stock exchange where they
are listed.
15. FFUUNNCCTTIIOONN OOFF SSEECCOONNDDAARRYY
MMAARRKKEETT
Capital Formation:
By mobilizing the savings of the
public to productive purposes,
facilities in capital formation
and there by economic growth.
16. Security Price Formation:
By quoting the share price in
the secondary market the
real worth of a security can
be know to the investors.
17. Liquidity to Investment:-
Secondary market provides ready
and continuous market for listed
securities, hence investors can
enjoy liquidity to the investors.
18. Securities ttrraaddeedd iinn
tthhee SSeeccoonnddaarryy MMaarrkkeett
Government Securities:-
Includes securities of Central
Government, State
Government, State Corporation
and Semi Government
Authority like Port trust,
Municipal corporation etc.
19. Corporate Securities:-
Corporate or Industrial
Securities includes equity
shares, preference share and
debentures of different types.