SECONDARY MARKETSSECONDARY MARKETS
presented by,presented by,
SUDHEESH KKVSUDHEESH KKVGcte,thycaudGcte,thycaud
CONTENTSCONTENTSFUNCTİON OF SECONDARY MARKETSFUNCTİON OF SECONDARY MARKETS
Trading LocationsMarket StructuresPerfect Markets
There are actually two levels of There are actually two levels of the the capital markets in which capital markets in which investors participate: investors participate:
Primary Markets
Secondary Markets
SECONDARY MARKETSECONDARY MARKETSecondary market means market for
purchase and sale of second hand securities.
Securities once sold can be resold to
others through stock brokers.
Also called After Market.
It is a organized market where securities issued by- Companies, Government, Semi –Government Institutions and Public bodies are traded.
These securities are traded in the stock exchange where they are listed.
SECONDARY MARKET INCLUDES:-SECONDARY MARKET INCLUDES:-Stock exchanges BSE (Sensex) NSE (Nifty)
OTCEIOTCEI(Over The Counter exchange of India)
SHCILSHCIL (Stock Holding Corporation India ltd)
LONDON INTERNATIONAL STOCK LONDON INTERNATIONAL STOCK EXCHANGEEXCHANGE
FRANKFURT STOCK EXCHANGEFRANKFURT STOCK EXCHANGE
PARIS BOURSEPARIS BOURSE
TOKYO STOCK EXCHANGETOKYO STOCK EXCHANGE
ISTANBUL STOCK EXCHANGEISTANBUL STOCK EXCHANGE
FUNCTION OF FUNCTION OF SECONDARY SECONDARY MARKETMARKET
Capital Formation: –
By mobilizing the savings of the
public to productive purposes, facilities in capital formation and there by economic growth.
Security Price Formation: – By quoting the share price in
the secondary market the real worth of a security can be know to the investors.
Liquidity to Investment:-
Secondary market provides ready and continuous market for listed securities, hence investors can enjoy liquidity to the investors.
Securities traded in the Securities traded in the Secondary MarketSecondary Market Government Securities:-
Includes securities of Central Government, State Government, State Corporation and Semi Government Authority like Port trust, Municipal corporation etc.
Corporate Securities:-
Corporate or Industrial Securities includes equity shares, preference share and debentures of different types.
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