Which of the following securities are traded in the secondary market?a...
The secondary market is where existing securities are bought and sold. This includes securities that have been previously issued and are already in circulation. Debentures, which are debt instruments issued by established companies, are an example of securities traded in the secondary market. This market provides liquidity to investors by allowing them to sell their holdings when needed.
View all questions of this test
Which of the following securities are traded in the secondary market?a...
Debentures of an established company:
Debentures of an established company are securities that are traded in the secondary market. When a company issues debentures, investors can buy and sell them on the secondary market after the initial issuance. The secondary market provides liquidity to investors who want to buy or sell these securities without having to wait until maturity.
In the secondary market, investors can trade debentures at market prices based on supply and demand. The price of debentures may fluctuate depending on various factors such as interest rates, credit ratings, and market conditions. Investors can also earn capital gains or losses by buying and selling debentures at different prices.
Overall, debentures of an established company are valuable securities that provide investors with opportunities to diversify their portfolios and potentially earn returns through trading in the secondary market.