Secondary Market

The market in existing securities provided by the London Stock Exchange .

The secondary market, by providing a method of buying and selling securities, overcomes the basic mis-match between the needs of savers/investors who provide new money and the requirements of capital raisers/borrowers.

In general, those raising money need large sums over long periods, those investing it have small sums which they cannot tie up for the same length of time.

By providing investors with a ready market for their existing securities, the Stock Exchange thus also encourages them to finance new issues.

See Also: Online share dealing service Stockmarket Centre

Last Updated: June 2006 © Moneyextra.com

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