primary and secondary securities market - the fundamental concepts for any commodity merchants.Under the primary market is usually understood by means of which there is a transfer of property rights on securities, regardless of their form of release from the issuing company, for a particular investor.The concept of the secondary market is much more complex, it is characterized by a more complicated system of relations between the holders of the shares, so it should stop more detail.
So, in modern economic science secondary securities market - a complex system of relationships between the holders of the securities is not their issuers to transfer or dispose of the ownership of previously placed shares on the primary market.At the same time as an important characteristic of this market is above all an opportunity to name an arbitrarily large number of such conversions - after the issuance of securities of the potential number of resales is not limited.
fact the secondary securities market can be characterized as a place serving to maximize the recovery of speculative profit, which is possible only by repeated resale of shares.In today's economy is considered as the actual secondary market and electronic, that is a form of transaction in this case does not play a decisive role.
main actors in the secondary market are usually brokers.Most often, they manage customer accounts, selling and buying certain securities, depending on market fluctuations, in order to increase working capital.Decisions on the sale or purchase made on the basis of the so-called listing.This is a key concept of the secondary market, which implies some set of rules that define quotations of any shares on the stock exchange.At the same time the secondary securities market is characterized by the fact that the listing procedure is similar for most of the stock exchanges operating in the territory of one state, allowing emissirovannym securities after listing one of them get in free circulation at the other sites.
worth noting that the procedure for listing and assigning certain securities of specific quotations is important not only for the players of the secondary market.Almost always mean higher quotes for the issuing company and a significant increase in goodwill, which, in turn, to a certain extent and ensures a gradual rise in prices for any kind of valuable paper.
They just above it follows that the listing - a procedure is absolutely necessary for all participants in the stock market.It allows investors to adequately assess the profitability of investments in the existing free float paper brokers to better navigate the need for timely acquisition of shares or reset and helps issuers to gain weight in the business community.
Resale securities it does not allow you to play for investors to significantly increase their own profits at the expense of the serial number of transactions in shares or bonds, and for issuers it opens the possibility of obtaining additional cash infusion into the business with a simultaneous increase in goodwill.The volume of the market is significantly higher than the primary, which opens up opportunities for brokers speculation.
Thus, summing up, we can give a more detailed definition of the secondary market.Thus, the secondary stock market - is an infinite number of transactions on the transfer or disposal of the rights of possession of shares concluded between investment funds, brokers and other players in the stock market.
