Q.Write a note on Secondary Market.

The Secondary Market is the market for buying and selling already-issued securities among investors; the stock exchange is its main institution.

The secondary market is that part of the capital market where existing (already-issued) securities are traded between investors. It is popularly known as the stock market and its organised form is the stock exchange.

Key points:

• It deals only in second-hand securities — no new capital is raised for the company here; funds simply move from one investor to another.
• It provides liquidity and marketability, letting investors convert securities into cash easily.
• It gives continuous and fair pricing of securities through demand and supply.
• Trading takes place through brokers on recognised stock exchanges such as the BSE and NSE. …