SECONDARY MARKET:
The secondary market refers to the market where the securities issued in the primary market where the securities issued in the primary market are traded.the secandory market depands on the primary market.The secandary market includes 21 regional stock exchanges, the over the counter exchange of india (OTCEI) and national stock exchange of india.
STOCK EXCHANGE
The word ‘stock’ means a fraction of the capital of a company and the word ‘exchange’ means a place for purchasing and selling something. Stock exchanges deal in securities like shares, debentures or bonds issued by the companies or corporations in the private as well as public sector and bonds issued by the central and state governments.
CHERACTERISTICS OF STOCK EXCHANGE:
1.It is a place where securities are purchases and sold.
2.A stock exchange is a voluntary association of persons whether incorp business for orated or not.
3.Stock exchanges do not conduct business for themselves.they provided facilities to their members to transict in company securities.
4.the trading in astock exchanges is strictly regulated.rules and regulations are prescribed for various transactions.
5.Each stock exchange formulates its own rules and regulations. Any members who acts against the rules of the exchange can be removed from the membership.
6.Only members can transact in a stock exchange. Any person who has completed 18 years can become a member.
7.Both geniune investors and speculators can buy and sell shares in stock exchange.
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