jälkimarkkinoita

Jälkimarkkinat refers to the trading of securities after their initial issuance. This is where investors buy and sell existing stocks, bonds, and other financial instruments among themselves. The primary function of the secondary market is to provide liquidity, allowing investors to easily convert their holdings into cash. Without a functioning secondary market, investors would be hesitant to purchase securities in the primary market, as they might be unable to sell them later.

The most common examples of secondary markets are stock exchanges, such as the New York Stock Exchange (NYSE) or the Nasdaq. These exchanges facilitate the trading of shares of publicly listed companies. Other secondary markets include over-the-counter (OTC) markets for bonds and derivatives, where trading occurs directly between parties rather than on a centralized exchange.

Prices in the secondary market are determined by the forces of supply and demand. Factors influencing these forces include company performance, economic conditions, investor sentiment, and global events. The price fluctuations in the secondary market reflect the collective assessment of investors regarding the future prospects of the underlying assets.

The secondary market plays a crucial role in price discovery, helping to establish the fair value of securities. It also provides valuable information to issuers about investor interest and the perceived value of their offerings. Regulators closely monitor secondary markets to ensure fair and orderly trading practices and to prevent market manipulation.