Our Recommendations :-
Follow FB Page Facebook

Similarities between Primary Secondary Markets

Similarities between Primary Secondary Markets are follows:

(a) Listing: The securities issued in the primary market are invariably listed on a recognized stock exchange for dealings in them. Further trading in secondary market can also be carried out only via a stock exchange platform. The listing on stock exchanges provides liquidity as well as marketability to the securities and facilitates discovery of prices for them.

(b) Control By Stock Exchanges: Via the mechanism of Listing Agreement between the issuer companies and the stock exchange the stock exchanges exercise considerable control over the new issues as well securities already listed on the stock exchange. Exchanges ensure that there is continuous compliance by the issuer company of the clauses provided in the Listing Agreement

Interrelationship between Primary Markets and Secondary Markets:

The markets for new and old securities are, economically, an integral part of a single market the capital market. Their mutual interdependence from the economic point of view has following two dimensions.

• One, the quantum of trading and the participation of the investors on stock exchange has a significant bearing on the level of activity in the primary market and, therefore, its responses to capital issues.

• Second dimension of the mutual interdependence is the fact that the level of activity in primary market has a direct impact on the level of activity on secondary market. As more and more companies issue their securities in the market investment options for investors increase which leads to a wider participation by investors in the secondary market.

Similarities between Primary Secondary Markets

Participants in Capital Market

• Investors: Investors are the lifeline of any capital markets. For a vibrant capital market the capital market should be capable enough to attract the savings of investors.

Investors belong to various categories such as Retail Investors, Institutional Investors like mutual funds, insurance companies and Foreign Portfolio Investors.

• Stock Exchange:- Stock Exchange is a place where securities issued by issuer companies are listed and traded. The term is  synonymously used for secondary markets.

Similarities between Primary Secondary Markets

cakart

CAKART (https://www.cakart.in) you will get everything that you need to be successful in your CA CS CMA exam – India’s best faculty video classes (online or in pen drive) most popular books of best authors (ebooks hard copies) best scanners and all exam related information and notifications.Visit www.cakart.in and chat with our counsellors any time. We are happy to help you make successful in your exams.

Click here to watch India’s best CA CS CMA Video Classes.

Click here to see a list of India’s most popular CA CS CMA text books.

Click here to download FREE CA CS CMA books.

Important Note – Preparing for CA Final?
CAKART provides Indias top faculty each subject video classes and lectures – online & in Pen Drive/ DVD – at very cost effective rates. Get video classes from CAKART.in. Quality is much better than local tuition, so results are much better.
Watch Sample Video Now by clicking on the link(s) below – 
For any questions Request A Call Back  
About Author: karishma
Iam CA student and doing articles at present.

Leave a Reply

Your email address will not be published. Required fields are marked *

Chat with a counsellor
SIGN UP
CA Final
Demo Videos
Watch Now