What is Secondary Market?
When a private company or any government organizations want to expand their business they need fund, for the first time they sell their shares through IPO in primary market. In primary market a trader can buy that security directly. After that that stock is available for trading in secondary market.
Secondary market is also known as “stock market”. The national exchanges, such as the NSE (National Stock Exchange) and BSE (Bombay Stock Exchange), are the secondary market. Secondary market provide high liquidity for trading, you can buy and sell as per your choice. It provides real time prices, you can check no. of traders, volume.
In the secondary market equity share, bonds, government securities, debentures are available for trading. For trading in secondary you have to open a trading and demat account with a broker who is registered with SEBI. Client has to provide some personal details like PAN No., Bank Details for transitions, Photograph etc. Once your account will open you have to deposit some amount for trading. As per your deposit they will allow you to trade in stock market. In secondary market a trader can trade online or offline.
The secondary market is divided into two kinds of markets:
- Auction market
- Dealer market
For detail about Primary and Secondary market join NIFM. Book your seats in advance. Call NIFM 99103 00590, www.nifm.in
Blog Written By Amber Gupta
2024(2)
