The Securities Market: Introduction


Companies, government and international organizations issue securities. Such securities are issued to raise funds for the activities of the issuer. When securities are issued they have to be traded. It is an advantage to have an organization that brings into contact potential buyers and potential sellers of securities. This organization is called the Stock Exchange.

The Stock Exchange is a place where securities are traded. The Stock Exchange can be a physical place, it can be a system of telephone links, or as is becoming more common it can be a network of computers. The securities market can be divided into different segments based on the characteristics of the securities being traded or the type of transaction that takes place in the market or the needs of investors. For example we have Money Market and Capital Market. The securities market can also be viewed as Primary MarketĀ or Secondary market.

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