ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -Secondary markets are primarily of two types – Stock exchanges and over-the-counter markets. Stock exchanges are centralised platforms where securities trading take place, sans any contact between the buyer and the seller. National Stock Exchange (NSE) and Bombay Stock Exchange (BSE) are examples of such platforms.

Detailed explanation-2: -An exchange market is more of an open market. Here the prices of currencies, start date, expiration date and parties involved are clearly transparent or rather highly visible. On the other hand, in an OTC market, all terms and conditions involved with a transaction are held within counter parties only.

Detailed explanation-3: -Exchange markets and over counter markets are considered as two types of secondary market. A secondary market is a marketplace where already issued securities both shares and debt can be bought and sold by the investors.

Detailed explanation-4: -There are two types of secondary markets – stock exchanges and over-the-counter markets. Exchanges are centralised platforms where securities are traded without any contact between buyers and sellers. Examples of such platforms include the National Stock Exchange (NSE) and Bombay Stock Exchange (BSE).

Detailed explanation-5: -15) (I) There are two types of exchanges in the secondary market for capital securities: organized exchanges and over-the-counter exchanges.