Features of a secondary market capital market security law notes
Features of a secondarymarket:
Ÿ The investors/speculators trade in the securities. The companywhose securities are traded does not get any funds from the trading in asecondary market.
Ÿ In India, only the securities of listed public companies can betraded on a recognized stock-exchange.
Secondary markets provide liquidity to the investors. The market prices in thesecondary markets reflect the investor perception of a company’s performance.
The Journey so far…
India , 125 years of experience seem to be a proud milestone. A lot has changedsince 1875 when 318 persons became members of what today is called "BombayStock Exchange Limited" by paying a princely amount of Re1.
Since then, the stockmarket in the country has passed through both good and bad periods. The journeyin the 20th century has not been an easy one. Till the decade of eighties,there was no measure or scale
thatcould precisely measure the various ups and downs in the Indian stock market.Bombay Stock Exchange Limited (BSE) in 1986 came out with a Stock Index thatsubsequently became the barometer of the Indian Stock Market.