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Secondary Market

Secondary market is that financial market in which investor can buy and sell shares and bonds after its issue by company. After issuing shares or debentures, it becomes existing product and it will be saleable like any other product. Not only secondary market for shares but secondary market for any thing can be made according to requirement.

In this market, investor does not buy the financial product directly from company BSE and NSE are main examples of secondary market in India.

Importance of Secondary Market

Secondary market plays a vital role for effective movement of shares and debenture from one investor to another investor. If any investor is not interested to keep any financial product as long term investment, he just come to secondary market and sell his security to other investor. Other investor either can keep or sell to another investor. Thus secondary market is more liquidating market and very useful for all investors.

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Accounting Education: Secondary Market
Secondary Market
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Accounting Education
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