The secondary market is a market for existing securities, such as government and corporate securities. It consists of major components like stock exchanges that allow investors to buy and sell securities from each other. The secondary market provides liquidity to investments, establishes security prices continuously, and creates a marketplace for investors. It differs from the primary market, where new securities are sold, in that the secondary market provides a regular, continuous market for existing securities and allows investors to both purchase and sell securities.

1. SECONDARY
MARKET

2. MEANING
Secondary market is
a market for the old
or existing
securities

3. MAJOR COMPONENTS IN
SECONDARY MARKET
NSE BSE OTCEI
REGIONAL
Stock
exchanges
SHCL

4. FUNCTIONS OF
SECONDARY
MARKET
CAPITAL
FORMATION
SECURITY
PRICE
FORMATIO
N
LIQUIDITY TO
INVESTMENT
CREATION
OF
MARKET
PLACE

5. SECURITIES
TRADED IN
THE
SECONDARY
MARKET
GOVERNMEN
T
SECURITIES
CORPORAT
E
SECURITES

7. COMPARISON BETWEEN PRIMARY AND
SECONDARY MARKET
PRIMARY MARKET
 DEALS WITH NEW
SECURITIES
 SOLD ONLY ONCE
 LINKS CO.AND
INVESTORS
 INVESTORS CAN
ONLY PURCHASE
 PROVIDES CAPITAL
TO COMPANIES
 NO PHYSICAL
EXISTENCE
SECONDARY MARKET
 EXISTING
SECURITIES
 PROVIDES REGULAR
&CONTINUOUS
MARKET
 BETWEEN
INVESTORS
 INVESTORS CAN
PURCHASE AND
SELL
 ISSUING CO.
DOESNOT HAVE ANY

8. STOCK EXCHANGE
STOCK EXCHANGE REFERS TO A
MARKET WHERE LONG-TERM
SECURITIES ARE VOLUNTARILY
EXCHANGED AT COMPETITIVE PRICES
DETERMINED ACCORDING TO FREE
PLAY OF DEMAND AND SUPPLY

9. FUNCTIONS OF STOCK EXCHANGES
PROVISION OF SAFE & FAIR DEALINGS
FACILITATES ACTIVE TRADING
SUPPLY OF LONG-TERM FUNDS
ENCOURAGEMENT TO IMPROVE PERFORMANCE
HELPS IN DETERMINING TRUE PRICES