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securities market

n. an exchange where security trading is conducted by professional stockbrokers [syn: stock exchange, stock market]

Securities market

Securities market is a component of the wider financial market where securities can be bought and sold between subjects of the economy, on the basis of demand and supply. Securities markets encompases equity markets, bond markets and derivatives markets where prices can be determined and participants both professional and non professionals can meet.

Securities markets can be split into two levels. Primary markets, where new securities are issued and secondary markets where existing securities can be bought and sold. Secondary markets can further be split into organised exchanges, such stock exchanges and over-the-counter where individual parties come together and buy or sell securities directly. For securities holders knowing that a secondary market exists in which their securities may be sold and converted into cash increases the willingness of people to hold stocks and bonds and thus increases the ability of firms to issue securities.

There are a number of professional participants of a securities market and these include; brokerages, broker-dealers, market makers, investment managers, speculators as well as those providing the infrastructure, such as clearing houses and securities depositories.

A securities market is used in an economy to attract new capital, transfer real assets in financial assets, determine price which will balance demand and supply and provide a means to invest money both short and long term.

Usage examples of "securities market".

Convincing capitalists that publicly owned operations are as good an investment bet as General Motors fell to government securities market-makers, Cantor-Fitzgerald (100th floor, 700 workers, no known survivors).

This is still nineteen twenty-nine, and our money's still sunk in a very sick securities market.

After the, sudden establishment of the Third Power in the Gobi Desert the securities market had taken a deep dive.