Outline the main features of the primary and secondary markets for securities and explain the links between the two markets. Introduction Distinct from the money market that are markets for short term funds, the market for equities is part of the capital market which refers to the market for long term finance. In general, the capital market can be segmented into 2 parts: the primary market and the secondary market. A distinction can be seen from …showed first 75 words of 1709 total…

…showed last 75 words of 1709 total…have a secondary market without a primary market. The secondary market support the operations of the associated primary markets by providing liquidity to the lenders and also contribute to the efficiency of the primary market by providing relevant information. References: The UK financial system ( Mike Buckle & John Thompson ) British financial markets and institutions ( K.V.Peasnell & C.W.R..Ward ) Foundations of financial markets and institutions ( Frank J. Fabozzi & Michael G. Ferri )