What is Secondary Market ? (Meaning, Features, Functions and Procedures)

What is Secondary Market ?

 (Meaning, Features, Functions and Procedures)

What is Secondary Market ?

Meaning of Secondary Market:- 

The Secondary market or Stock market refers to the financial marketplace. where existing securities such as stock and bonds are bought and sold among investor. It provide liquidity and allows investor to buy or sale previously issued Securities.

Features or Characteristics of Secondary Market :-

1. Liquidity. 

2. Efficiency. 

3. Price discovery. 

4. Capital formation. 

5. Buying and selling of previously issued securities.

Features of Secondary Market :-

1. Ensure liquidity of capital.

2. Continuous market for securities.

3. Mobilizing surplus savings. 

4. Evaluation of securities. 

5. Safety in dealing. 

6. Capital allocation. 

Procedures of trading in secondary market are stock exchange. 

1. Selection of a broker. 

2. Placing an order. 

3. Making the contract. 

4. Contact note. 

5. Settlement.

6. Electronic settlement. 

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