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Answer Each of These Questions in About Fifteen Words: What is a Secondary Capital Market?

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Question

Answer each of these questions in about fifteen words:

What is a secondary capital market?

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Solution

Any transaction in shares or debentures subsequent to its primary offering is called “Secondary Transaction”. Thus, 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.

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Chapter 6: Resource Mobilization - Section C: Stock Exchange [Page 247]

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CBSE Entrepreneurship [English] Class 12
Chapter 6 Resource Mobilization
Section C: Stock Exchange | Q 1.3 | Page 247

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