What is secondary market ?
The secondary market is place where the investor buy and sell shares , security , bonds from one another .
In the secondary market the investor can not buy or sell directly to company.
Example. Let's take X is buyer. If investor X want to buy apple shares then he have to buy with another person who have allready holding apple shares ( the another person who already holding apple shares may be he get from ipo or he also buy it from another person) this how X get shares of apple, X can not get directly apple share from company ,
Untill company come with another ipo.
The secondary market includes stock exchange body to perform the buy and sell.
What is exchange body ?
Some examples of famous secondary market exchange body.
Their are some famous stock exchange body name with their country name like (NEW YORK STOCK EXCHANGE NYSE , LONDON STOCK EXCHANGE LSE , NATIONAL STOCK EXCHANGE NSE INDIA .
This type of stock exchange body conduct the process of buying and selling selling share,bonds , securities
The secondary market provide more liquidity to the investors .
What is liquidity and importance of liquidity in secondary market?
Liquidity play a very important role in secondary market it helps investor to buy or sell very easily . high market volume is indicater of High liquidity in market , making it simpler for investors to trade or invest efficiently.
Importance - if liquidity isn't their in market then investor have to trouble with lot of problems in buying and selling share, bonds, security in market.
What is volume in market and is this important in market ?
In simple language volume is a no of investor participating in no share s on specific time frame .
Key points of volume.
High volume shows the no of investor are interested in the shares and this is strong signal that shows momentum of market can be up or down.
Low volume shows that the no. of investor are low mean no big moment have to make.
Why bigganer should understand the secondary market?
Beginners should understand the secondary market because it's where they primarily buy and sell investment like shares, security, bonds .
This information totally for beginners
Because this is not only information you need to start stock market journey but this is basic which evry beginners or newly in stock market should know.
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And if you want to know basic about primary market then click here.