Secondary Market

The secondary market is the financial market where previously issued securities and financial instruments such as stocks, bonds, options and futures are traded. In the secondary market, an investor can buy a security directly from another investor instead of an issuing corporation. Majority of the trading is done in the secondary market. The shares are manoeuvred from one investor to another. It has an important role in the development of an efficient capital market. It enables the participants with ample liquidity.

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