markets (1)

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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