Hello folks, in the previous blog, I had discussed about some essential trading concepts and terminologies. In this blog, I am going to describe you about the structure and components of the Securities market place.
In any street market, the goods that sold are manufactured outside of the marketplace and the characters involved are those who visit the marketplace to buy goods. And those who reside within the marketplace in order to sell those goods.
Similarly, we can do a direct comparison of street market with the securities marketplace as follows:
- The goods (securities) are originated by organisations (issuers of securities) outside the marketplace.
- Investors visit the marketplace in order to buy and sell securities, either directly or via an agent.
- The STOs reside within the marketplace in order to sell securities to and buy securities from investors and agents.
So in layman term, we can say that the securities marketplace is place which provides the infrastructure to allow trading to occur, within a regulated environment.