Similarities between Primary and Secondary Markets
Some of the similarities between them are as follows:
(a) Listing: The securities issued in the primary market are invariably listed on a recognized stock exchange for dealings in them. Further trading in secondary market can also be carried out only through the stock exchange platform. The listing on stock exchanges provides liquidity as well as marketability to the securities and facilitates discovery of prices for them.
(b) Control by Stock Exchanges: Via the mechanism of Listing Agreement between the issuer companies and the stock exchange, the stock exchanges exercise considerable control over the new issues as well securities already listed on the stock exchange. Stock Exchanges ensure that there is continuous compliance by the issuer company of the clauses provided in the Listing Agreement.
No comments:
Post a Comment