What is the concept of secondary market? Basic Concept of Financial Market

Trading in stock market is not very easy as it seems to be. Before we start trading in stock market , make it clear how successfully it can be done?

Before entering into the stock market, it would be ideal to clear with the basics of financial market.

Secondary Market
It’s a place where securities that are already issued, trade in an electronic manner from one trader to another.

Hierarchy Of Stock market

SEBI - Securities and Exchange Board of India is the apex body that manages the smooth operations of Indian stock market.

Depository - Depository is an institution which holds the responsibilities of holding, receiving and transferring financial securities in an electronic form.

Depository Participants - A DP serves as an intermediary between the depositories (NSDL and CDSL) and investors.

Brokers - These are the intermediary who provide a platform to investors and trader to trade on exchange.

Client - A client can be anyone such as individual resident/ NRI, group of persons who actively involve in trading.