Secondary market also exist for the dealing of other assets, bonds and loans. Secondary market play a vital role in the capital market. More investors in the secondary market means more liquidity and more demands for the shares. The market performed well if more number of investors are willing to purchase the securities on the other hand if more investors are involved in selling in that case demand for the shares goes down because investors want to pull out there money from the market.Investors always wish to see more liquidity in the market so his or her money not tied up for the long period of time.
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