7. Secondary Security Market and Contract Market Structures
j. describe how securities, contracts, and currencies are traded in quote-driven, order-driven and brokered markets;
What is a secondary market?
The secondary markets permit trading in outstanding issues; that is, stocks or bonds already sold to the public are traded between current and potential owners.
What two ways do secondary markets support primary markets?
1. They provide liquidity
2. They set the prevailing market price
What is a call market?
In a call market, trading for individual stocks takes place at specified times.
What is a continuous market?
In a continuous market, trades occur any time the market is open.