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A secondary market is the financial market for trading of securities that have already been issued inside an initial common soldier or even public offering. Or else, secondary market could refer to the market for any rather utilized goods. a market that lives inside a fresh security upright when a fresh issue, is typically known as the aftermarket. When the new issued stock is listed in the stock exchange, investors and speculators can easily trade on the exchange, when market makers provide bids and offers in the freshly stock index.
Function
In the secondary market, securities come sold by & transferred from either of these investor or speculator to another. These are so crucial that a secondary market become extremely liquid and transparent. Prior to electronic means of communications, the single way to produce this liquidity was for investors & speculators to meet at a fixed place regularly. This is how else stock exchanges originated, see History of the Stock Exchange.
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