Question
Write a short note on secondary market or stock exchange.

Answer

Secondary market $($Stock exchange$):$
  • The secondary market is the market in which securities such as shares $($stock$),$ bonds, etc. which were originally issued in the primary market can be purchased and sold $($traded/exchanged$).$ The secondary market is also called the stock exchange.
  • Thus, stock exchange is an organization which enables share brokers and investors to buy and sell shares, debentures and other securities. It is an organized market for trading of existing securities.
  • According to K. L. Garg, “Stock exchange means a place for buying and selling industrial and financial securities like shares and debentures of a company, government securities, municipal securities.”
  • The oldest and first stock exchange of India was formed on $9th$ July, $1875$ as a “The native share and stock brokers’ Association”. Today, it is known as Bombay Stock Exchange.
  • Ahmedabad Stock Exchange started in $1894.$

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