Secondary Market
The secondary market is where previously issued securities are bought and sold among investors. In the context of the Treasury market, the secondary market is where previously issued Treasury securities are traded after their initial issuance in the primary market. Here’s how the secondary market works in the Treasury market:
Market participants: The secondary market in the Treasury market includes a wide range of market participants, including banks, institutional investors, primary dealers, and individual investors.
Market liquidity: The secondary market provides liquidity to investors by enabling them to buy and sell Treasury securities easily. Investors can trade Treasury securities in the secondary market either through an electronic trading platform or through a dealer.
Pricing: Treasury securities traded in the secondary market are priced based on supply and demand, just like any other financial instrument. Prices may fluctuate depending on a variety of factors, including changes in interest rates and market conditions.
Coupon payments: Treasury securities traded in the secondary market continue to pay interest to investors until their maturity date. The interest rate on these securities is fixed, and investors receive coupon payments at regular intervals until the security matures.
Trading volume: The secondary market for Treasury securities is one of the largest and most liquid markets in the world. The trading volume in this market is significant, reflecting the widespread use of Treasury securities as a benchmark for other financial instruments.
Secondary market refers to the network or system for the subsequent sale and purchase of securities. An investor can apply and get allotted a specified number of securities by the issuing company in the primary market. Once the securities are allotted, can thereafter to sold and purchased in the secondary market only. The secondary market is market for subsequent sale/purchase and trading in the securities. A security emerges or takes birth in the primary but its subsequent movements take place in secondary market. The secondary market consists of that portion of the capital market where the previously issued securities are transacted.
Apply for Treasury Market Professional Certification Now!!
https://www.vskills.in/certification/certified-treasury-market-professional