Question
Stock Exchange is a Secondary Market.

Answer

  • The stock exchange is a specific place where the trading of securities is arranged in an organized method.
  • In the primary market, new securities are floated by the issuing companies and direct contact with the public at large is established for selling of the securities.
  • A stock exchange is the single most important institution in the secondary market for securities.
  • It is the place where already issued and outstanding shares are bought and sold, repeatedly.
  • Thus, it is rightly said that Stock Exchange is a secondary market which is an organized market in India.

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