Bringing Securities to the Marketplace

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Hello folks, in the previous blog, I had discussed about the role of securities market place in trading. In this blog, I am going to describe you about the process and structure of how to bring securities to the marketplace.

In trading, the one of important thing we need to understand is workflow of securities marketplace and how securities are brought to the marketplace.

On the baisis of securities trading timing, the securities market is classified into two category:

  • Secondary market: The majority of trades executed in securities marketplaces around the globe on a daily basis are in securities that have been brought to the marketplace at a prior point in time. So those securities that fall into this category are said to be trading in the secondary market.
  • Primary market: Securities that are in the process of being brought to the marketplace are said to be trading in the primary market. The daily trading volume in primary market is lower than that conducted in the secondary market.

Methods of Issuing Securities:

The process of bringing securities to the marketplace is one that requires specialist skills. An issuer of securities typically operates in an industry which is different than the securities industry. So they do not have the expertise to manage the process efficiently.