Securities Market
*Securities Market ~ Generally Consists Of :
1 ) STOCK EXCHANGE ;
2 ) BOND EXCHANGE ;
3 ) MONEY MARKET ;
*A securities market consists of two main interdependent and inseparable segments :
the primary market and the secondary market.
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*The primary market is where new securities are initially issued and sold to investors, while the secondary market involves the trading of previously issued securities between investors.
*Primary Market :
i) This is where companies and governments raise capital by issuing new securities like stocks and bonds.
ii) The issuer receives the proceeds from the sale of these new securities.
iii) This market is also known as the new issue market.
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*Secondary Market :
i) This is where investors trade previously issued securities with each other.
ii) The original issuer is generally not involved in these transactions.
iii) This market provides liquidity for investors and allows them to buy and sell securities they already own.
In essence, the securities market facilitates both the raising of capital by issuers and the trading of those securities by investors.
*The vast majority of securities transactions take place in secondary markets, which include broker markets, dealer markets, the over-the-counter market, and the commodities exchanges.
*Security markets encompasses ~ i) stock markets, ii) bond markets and
iii) derivatives markets ~ where prices can be determined and participants both professional and non professional can meet.
* Money Market Vs Derivative Markets ~ Info :
