We will know the Secondary Market Meaning Examples.
Secondary Market Meaning Examples
Meaning:
The market in which investor buy and sell stock which they already own. In primary market, company issue share with the help of underwriter. However, in secondary market, people buy and sell the stock among themself.
Example:
Nepal Stock Exchange (NEPSE) is the example of secondary market. It is the market place people buy and sell share of different stock from Sunday to Thursday. In secondary market, all investment banks, individual investors, buy and sell share, mutual fund, debenture, and bond.
New York Stock Exchange , London Stock exchange, etc. are the major stock exchange in the world.
How does secondary markets works?
In secondary market, One person buys the share with help of his broker. Similarly, on the other hand, next investor sell the same share with the help of his broker. Similarly, two broker mutually exchange the money and share and handover to their respective clients after deducting tax ( if profit ) and commission.
Other Important Links:
Meaning of Primary Market: CLICK HERE
Primary Market Vs Secondary Market: CLICK HERE
Frequently Asked Question
1. What is secondary market?
= Secondary market is the market place where investor buy and sell the share they own with the help of brokers.
2. Example of the secondary market.
= Nepal Stock Exchange (NEPSE) is the example of secondary market. Internationally, New Work Stock Exchange is the example of the secondary market.
