secondary market (2)

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NAME ROLL NO.

PRIYANK DARJI 06

HARDIK NATHWANI 27

SHASHANK PAI 28

SAGAR PANCHAL 29

DHARMIK PATEL 32

KUSH SHAH 39

SIDDARTH TAWDE 463


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Financial markets consist of two major

types :

1.Money market

2.Capital market

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Secondary Market refers to a market where

securities are traded after being initially offered to

the public in the primary market and/or listed on the

Stock Exchange.

Majority of the trading is done in the secondary

market. Secondary market comprises of equity

markets and the debt markets.

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In primary markets,

securities are bought by

way of public issue directlyfrom the company.

New issue are available in

primary market.

The primary is a

middlemen.

New issue of common

stock;bonds and preferred

stock are sold by

companies.

In Secondary market share

are traded between two

investors. Securities usually bought

and sold through the

secondary market.

The secondary market are

broker and dealer.

The secondary market stock

and bonds issues are sold

to the public.

primary market secondary market


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Secondary Market has an important role to play

behind the developments of an efficient capital

market.

Secondary market connects investors' favoritism for

liquidity with the capital users' wish of using their

capital for a longer period.

Secondary market is that financial market in

which investorcan buy and

sell shares and bonds after its issue by company.7
http://www.svtuition.org/2008/02/who-is-investor.htmlhttp://www.svtuition.org/2010/02/equity.htmlhttp://www.svtuition.org/2010/02/bond.htmlhttp://www.svtuition.org/2009/12/what-is-company-what-are-its-features.htmlhttp://www.svtuition.org/2009/12/what-is-company-what-are-its-features.htmlhttp://www.svtuition.org/2010/02/bond.htmlhttp://www.svtuition.org/2010/02/bond.htmlhttp://www.svtuition.org/2010/02/equity.htmlhttp://www.svtuition.org/2010/02/equity.htmlhttp://www.svtuition.org/2008/02/who-is-investor.html


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1.Exchange

2.Over the counter

3.Capital gain

4.Liquidity

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Advantages

Secondary markets offer advantages to both sellers andbuyers. Sellers gain the advantage of effectively reducing the

purchase price of products and investments by recouping aportion of what they originally paid.

Disadvantages

If secondary markets grow too large, they can eat into originalsellers' sales and profit margins. Especially in the case oflong-lasting goods such as automobiles and musicalinstruments, secondary markets can encourage a largepercentage of shoppers to purchase used items rather thanpurchasing new.

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RODUCTSAVAILABLEINTHESECONDARYMARKET

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Equity Shares

Debentures

Bond

Commercial Paper

Government securities


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Who is a broker?

Who is a sub broker?

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The Exchange purchases the requisite quantity in

the Auction Market and gives them to the buying

trading member.

If the shares could not be bought in the auction i.e.

if shares are not offered for sale in the auction, the

transactions are closed out as per SEBI guidelines.

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AUCTION


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MARGIN TRADING FACILITY Margin Trading is trading with borrowed

funds/securities.

It is essentially a leveraging mechanism whichenables investors to take exposure in the market

over and above what is possible with their own

resources.

SEBI has been prescribing eligibility conditions and

procedural details for allowing the Margin Trading

Facility from time to time.13


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The primary focus of risk management by SEBI has

been to address the market risks, operational risks

and systemic risks.

SEBI has been continuously reviewing its policies

and drafting risk management policies to mitigate

these risks, thereby enhancing the level of investor

protection and catalyzing market development.

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Step 1. Investor / trader decides to trade

Step 2. Places order with a broker to buy / sell

the required quantity of respective securities

Step 3. Best priced order matches based on

price-time priority

Step 4. Order execution is electronically

communicated to the brokers terminal

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Step 5. Trade confirmation slip issued to theinvestor / trader by the broker

Step 6. Within 24 hours of trade execution,

contract note is issued to the investor / trader by thebroker

Step 7. Pay-in of funds and securities before

T+2 day

Step 8. Pay-out of funds and securities on T+2day 16


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secondary market (2)

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