Secondary market
Submitted to Submitted by
Ms shikha gupta Arjun
Assistant professor Section B
Roll no: - 9
Types of Financial market:
• The Financial markets can be divided broadly into 2 marke
1 . Money market:-
Money market is a market for debt securities that pay off in the
Short term usually less than one year
2 . Capital market:-
Capital market is a market for long term debt and equity shares.
Types of capital markets:
Defination:
• Secondary market:-
1. Secondary market refesrs to a market where securities are Traded after
being initally offerd to the public in the Primary market and listed on the
stock exchange.
2. Majority of the trading is done in the secondary market. Secondary
Market comprises of equity markets and the debt markets
Types of secondary market:
1. Exchanges:-
It is a market place wherein there is no direct contact between the buyer
and the seller like NYSE or NASDAQ.
2. Over-the-counter (OTC) market:-
It is a decentralized place, where the trading among themselves. Foregin
exchange market (FOREX) is one such type of market.
Features of secondary market:
Chief features of secondary market are:
1. It creat liquidity
2. It comes after primary market
3. It has a particular place
4. It encourages new investment
Function of secondary market:
1. It's continuous market for securities
2. You can evaluat securities
3. You can mobilize saving
4. Stock markets encourage healthy speculation
5. Easy movment of funds
6. BSE and NSE protect investors
Continu...
7 . Secondary market are an economic barometer
8 . Secondary markets regulates companies
9 . Stock market attract foreign capital.
Advantages of secondary market:
1. It mobilizes saving
2. Great investment opportunities for shareholders
3. You get investment advice
4. Better corporate governance
Disadvantages of secondary market:
1. Secondary markets are volatile
2. Brokerage and commissions
3. Time consuming.
Product deals in secondary market:
1. Equity
2. Goverment securities
3. Debentures
4. Bond