Whats the difference??? is it that the secondary market can only trade in an exchange???
secondary market refers to trading of securities after they have been issued. the initial issue is the primary market. e.g. an IPO is a primary issue wherein new shares are issued to the public. subsequent trading between investors in those shares on an exchange represents the secondary market. the third market also is a secondary market, except that trading takes place away from the exchanges through electronic brokers.
so the its almost the same the main difference is that is away from the exchange?? and with respect to the fourth market is that investors don’t use brokers???
3rd market: Exchange listed stocks trading over the counter
4th market: matching large buy and sell orders on electronic crossing network
(after my schweser exercises)
Personally, I think that calling them the 3rd and 4th markets is stupid.
Primary, secondary, third, fourth? Give me a break!
They should be, respectively, the _ tertiary _ and _ quaternary _ markets.
Finance people are idiots.
I agree with you.
I recognize also that in Finance, they make new definitions for nothing. In my opinion, it is not necessary to define tertiary and quaternary markets which have just a very slight difference with secondary market.
Another problem is that they use many termes for same definition (exemple: coupon rate = coupon yield = nominal yield (and maybe equal also nominal rate ? )).
Finance people like to invent new definitions, why they must make life more complicated :))
here
There are four markets -
-
Primary market - where private companies issue shares to the public for the first time calles IPO.
-
Secondry market - After IPO the sale & purchase of shares in market is called secondry market.
-
Third market - Sale & purchaes of shares listed in exachage in over the counter market is called third market.
-
Fourth market - As like as Third market but if is privately or trough unrecognised exchange.
Hope it is clear.