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

Define the first aspect of capital budgeting decision, Define the first asp...

Define the first aspect of capital budgeting decision The first aspect of capital budgeting decision relates to the choice of new asset out of the alternatives available or rea

Forex, I am looking for assignment help on the topic FOREX. It would be gre...

I am looking for assignment help on the topic FOREX. It would be great if anyone help me.

Compounded value of a series of cash flows, Compounded Value of a Series of...

Compounded Value of a Series of Cash Flows: - We have considered merely single payment made once as well as its accumulation effect. An investor possibly interested in investing mo

Analysis of financial statements, Turnover has increased 10% since 2009 eve...

Turnover has increased 10% since 2009 even if this is at the expense of a drop in the gross margin earned which has fallen from 35.0% to 32.7% which has resulted in only a marginal

Explain how eurocurrency is created, Explain how Eurocurrency is created. ...

Explain how Eurocurrency is created. Answer: The center of the international money market is the Eurocurrency market. A Eurocurrency is a time deposit of money in an internationa

Explain how management goals are incorporated into pro forma, Explain how m...

Explain how management goals are incorporated into pro forma financial statements. Management locates a target goal, and forecasters produce pro forma financial statements within

Explain difference among the discounted free cash flow model, Explain the d...

Explain the difference among the discounted free cash flow model as it is applied to the valuation of common equity and as it is applied to the valuation of whole businesses. The

Need for credit and its nature, Need for Credit and its nature On the d...

Need for Credit and its nature On the demand side of the economy are the consumers of goods and services who require funds basically for acquiring certain consumer durables. Th

Internal rate of return, Internal Rate of Retur n The discount ...

Internal Rate of Retur n The discount rate at which the net current value (the value of all future cash flows, in excess of the real investment, expressed  in today's d

Establish ground rules for the study and design phases, Question : One ...

Question : One activity of the study phase is: "Establish Ground Rules for the Study and Design Phases". (a) What are ground rules? (b) When developing ground rules for a

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