What is secondary share market?
The secondary market is where investors buy and sell securities they already own. It is what most people typically think of as the “stock market,” though stocks are also sold on the primary market when they are first issued.
What are the differences between primary and secondary market?
The capital market is a financial system where companies can raise money by issuing shares, bonds, debentures, etc. The primary market is where the securities are created for the first time. While the secondary market is the market dealing in securities that are already issued.
What is primary market and secondary market in India?
Primary market is a place where securities are issued by the company for the first time to general public for raising funds in order to fulfill the long term capital requirement. While secondary market is a place where existing securities like shares, debentures, bonds, options, commercial papers, treasury bills, etc.
What is the function of secondary market?
A secondary market acts as a medium of determining the pricing of assets in a transaction consistent with the demand and supply. The information about transactions price is within the public domain that enables investors to decide accordingly.
What are examples of secondary markets?
Examples of popular secondary markets are the National Stock Exchange (NSE), the New York Stock Exchange (NYSE), the NASDAQ, and the London Stock Exchange (LSE).
What are examples of secondary market?
What is secondary market and its types?
Apart from the stock exchange and OTC market, other types of secondary market include auction market and dealer market. The former is essentially a platform for buyers and sellers to arrive at an understanding of the rate at which the securities are to be traded.
What is secondary market and example?
The secondary market is where investors buy and sell securities from other investors (think of stock exchanges. For example, if you want to buy Apple stock, you would purchase the stock from investors who already own the stock rather than Apple. Apple would not be involved in the transaction.
