Capital market-secondary market, Financial Management

Assignment Help:

Secondary Market

The secondary market is also referred to as the stock market where dealings in shares are taken up. It helps the shareholders to find buyers for trading. Thus, it creates liquidity in the capital market. Portfolio managers undertake buying and selling of shares so as to adjust their portfolio. It is called secondary market because trading of shares takes place in this market after they are issued to the shareholders. Thus, the secondary market is that segment of the capital market, where the outstanding securities issued by the Central and the State Governments, public bodies and corporate entities are traded. It is an open auction market where buyers and sellers meet and evolve a competitive price for the securities.

The secondary market in India consists of twenty four stock exchanges including an Over-The-Counter Stock Exchange (where small sized companies are listed) recognized by the government under the Securities Contract (Regulation) Act, 1956. These stock exchanges, operating under the rules, bye-laws and regulations approved by the government, constitute an organized market for the outstanding securities. In order to bring in the effect of objects of the legislation under the SCRA, the Government promulgated the Securities Contract (Rules), 1957. These are statutory rules and comprise Code of Standardized Regulations applicable to all recognized exchanges. Thus, the Securities Contract (Regulation) Act, 1956, and Securities Contract (Rules), 1957, both comprise the entire range of legal framework for regulating the stock exchanges and protecting the interest of the investors.


Related Discussions:- Capital market-secondary market

APPLICABILITY OF OPERATING CYCLE, #questioDiscuss the applicability of an o...

#questioDiscuss the applicability of an operating cycle in the vegetable growing business n..

Explain marginal cost of capital, Q. Explain Marginal cost of capital? ...

Q. Explain Marginal cost of capital? The calculation of cost of capital focused when the firms total financing and its paten of financing is given and remains constant. However

Determine the example of rate of return of a bond, Determine the example of...

Determine the example of Rate of return of a Bond A bond is paying 10 % interest per annum and is going to mature in next two years At maturity it would pay its principal amoun

Structure and organization of treasury , I am looking for assignment help o...

I am looking for assignment help on the topic Structure and Organization of Treasury. It would be great if anyone help me.

Calculation of a firms sales returns, a) The combined two-firm concentratio...

a) The combined two-firm concentration ratio of Motorola (approximately 17.5%) and Nokia (35%) is around 52.5% of the market. b) Up to 2 marks for correct definition: Market sha

Automatic reinvestment plan, Automatic Reinvestment Plan Like in the US...

Automatic Reinvestment Plan Like in the US, UTI India has also started this plan where the amount of dividend and other income accrued on mutual fund investments is automatical

Objectives of working capital management, Q. Objectives of working capital ...

Q. Objectives of working capital management? The objectives of working capital management are habitually stated to be profitability and liquidity. These objectives are habitual

Management of sundry debtors, Management of Sundry Debtors: SUNDRY - M...

Management of Sundry Debtors: SUNDRY - Miscellaneous infrequent or small customers that are not given individual ledger accounts but are classified as a group. SUNDRY CREDI

Budgeting and budgetary control, Budgeting and Budgetary Control: The n...

Budgeting and Budgetary Control: The next element of financial management is budgeting and budgetary control.  Budgeting is an integral part of the management accounting proces

Effective duration and convexity, Effective Duration and Convexity The ...

Effective Duration and Convexity The modified duration is a measure of the sensitivity of a bond's price to interest rate changes; the assumption made here is that the expected

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd