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Answer Each of These Questions in About Fifteen Words: What is the Need of Secondary Market? - Entrepreneurship

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Question

Answer each of these questions in about fifteen words:

What is the need of secondary market?

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Solution

The secondary capital market, which is also known as old securities market or stock exchange deals with buying and selling of old securities i.e. the market securities issued earlier are sold by existing investors in this market, thus paving way for the entrepreneurs that if they offer high returns to market, investors will remain inclined to invest therein. The secondary market enhances the marketability of securities and thereby provides liquidity to investments.

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Chapter 6: Resource Mobilization - Section B: Financial Markets [Page 246]

APPEARS IN

CBSE Entrepreneurship [English] Class 12
Chapter 6 Resource Mobilization
Section B: Financial Markets | Q 1.13 | Page 246

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