SUPERIOR-PAPERS.COM essay writing company is the ideal place for homework help. If you are looking for affordable, custom-written, high-quality and non-plagiarized papers, your student life just became easier with us. Click the button below to place your order.
Order a Similar Paper Order a Different Paper
Paraphrasing: Changing the sentence format and syntax, as well as changing the order of sentences, not just changing vocabulary
Why secondary markets are so important to raise capital?
- A secondary market is any market where owners of outstanding securities can sell them to other investors.
- Secondary markets are like used-car markets in that they allow investors to buy or sell previously owned securities for cash.
- Secondary markets are important to corporations as well because investors are willing to pay higher prices for securities in primary markets if the securities have active secondary markets.
- Thus, companies whose securities have active secondary markets enjoy lower funding costs than similar firms whose securities do not have active secondary markets.
- Secondary markets are important because they enable investors to convert securities easily to cash.
- Business firms whose securities are traded in secondary markets are able to issue new securities at a lower cost than they otherwise could because investors are willing to pay a premium price for securities that have secondary markets.