How to recognise the types of secondary market

Secondary market is the platform of the transaction of existing securities once issued in the primary market. Secondary market is open for all to trade. The small investors as well can trade their securities here. To get a more detailed concept check out Brokers Review.

Types of secondary market

 

The figure of secondary markets is continually increasing since Forex Trading Platform monetary tool are being launched.  Click here Money Withdrawal to know more.

The primary types are as follows:

 

Auction Market

 

This is the place where buyers put competitive bids along with sellers who present competitive bids at the same time. Buyers point out the highest value they are eager to give and sellers show the lowest value they are keen to acknowledge. Compatible offers are then summed up, and the trade is performed.

Investors are not required to look for cost-effective options. This is because all purchaser and trader are at same location. Everything is proclaimed in free and investors can settle on easily.

Although mainly the trading is finished via a computer, the auction market can function like an open outcry means “where buyers and sellers call out prices to each other out loud”.

Dealer Market

In this market, the action is restricted to dealers functioning as key for their individual accounts. Brokers functioning as negotiators for their customers cannot play a part here.

A difference here is that his market is an “over-the-counter” market. Stocks here are not dealt over on “over-the-counter” notice boards or on pink sheets rather than stock exchanges.

Contestants do not assemble at a known place. Instead, the whole procedure of selling and buying is done through electronic medium or computer. Interested sellers put across their bid through a specific computer, which is afterward conveyed to buyers via the dealers’ computer.