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Foundations Of Financial Management
Found in: Page 471
Foundations Of Financial Management

Foundations Of Financial Management

Book edition 16th
Author(s) Stanley B. Block, Geoffrey A. Hirt, Bartley Danielsen
Pages 768 pages
ISBN 9781259277160

Short Answer

Why is secondary trading in the security markets important?

Secondary trading facilitates investors with liquidity.

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Step by Step Solution

Secondary trading

Secondary trading refers to the trading of securities that have already been issued in primary markets. In secondary market, investors trade in the securities they already own.

Importance of secondary trading

Secondary trading brings liquidity in secondary markets because they trade in already-issued securities. In addition, secondary trading makes the prices of security investments competitive.

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