WHAT ARE THE CHARACTERISTICS OF A WELL FUNCTIONING SECURITIES MARKET

Securities market can be explained as a part of the bigger financial market. In this kind of market securities transactions can be done if the supply meets the demands. This is subjective to the economy and also can be traded via Infinity App or other automated software.

Securities market is not a single entity but includes other entities. Some of these entities may be as follows:

  • Equity market
  • Bond market
  • Derivative market-

Components of securities market:

Securities can be divided into two main components, they are:

Primary Market

In this market new securities are issued. And so the primary market is also known as ‘New Issues Markets’ or NIM. In this companies including government as well as public sector can gain funds when these new securities are issued and sold. The typical characteristics of a primary market are as follows:

  • This is a typical market for equity capital on long term basis.
  • The securities are issued from the companies and received directly by investors. There is no middle person or other links involved.
  • The issues are used to gain funds which the company uses most commonly for setting up of a new business, or modernization of an existing business. It may also be used to accumulate funds to repay a loan the company was unable to pay off on its own.
  • It performs the main function of arranging for capital in the economy.
  • The borrowers of the primary market basically raise the capital for a private company to go public.

Secondary Market

In this market, new securities are not issued but existing securities can be sold and bought. The security market can be further divided into organised exchanges. These organised exchanges include stock exchanges as well as over-the-counter. In over the counter exchanges individuals can club together and conduct transactions directly.

‘Secondary market’ is a term also used for other uses of any existing goods or when attempting to conduct a transaction of any used goods.

Characteristics of securities market

Securities market is typically a system that is intertwined between professional as well as non-professional participants. Some of its salient features are as below:

  • It aims to get new capital by issuing new securities which is known as securitization of debt.
  • It liquefies assets into real cash or financial assets.
  • To help get profits in both forms of investment short term as well as long term.
  • To gain profits from operating trades in the market
  • Determining the prices, through the supply and demand and other continuous changes.

Dos and Don’ts That You Must Remember In Investing

When you are someone who is kind of new to investing then you need to know that there are things that you need to do and must not do. All of the guidelines listed down below will help you to have a more efficient approach to investment nowadays. This is because the idea of investment and also how you do before is already different and more diverse nowadays that is why it is important that you keep yourself updated with what yo are doing now.

So the first thing that you must do when you are going to put your money on a new investment is that you need to research about it on your own. Do not just rely on the things that are given to you like the supposed to be results of a study of the percentage of a business to become successful. You need to do your research so that you will have your own understanding of what it really is and you will get to think if you will be able to benefit from it for a long time.

Next is that when you are just started investing nowadays then what you must do is to diversify your portfolio as an investor. Try investing in binary options visit http://top7binaryrobots.com/. This means that you need to have a lot of investments in your hand. However, this does not mean that you need to have a lot of investments in one industry because that will only make you knowledgeable in that one particular industry and not diverse in any sense at all. Diversification is not about the number of investments that you have in one industry, it is about the number of different types of investments. And definitely diversification of your investment portfolio does not mean that you get all types of investments at once. You just need to ensure that before you move on and get yourself into another investment, your previous investment is already stable or having high returns.

And then one of the most important things that you must remember is when you are investing is that you do not let emotions take a role in your investment decisions. Letting your emotions take place in deciding with your with investments is the biggest risk that you will take when you are just starting. That is why when you are still starting in making investments, always make a sound judgement by keeping your objectives in your mind and do not let your emotions cloud your investing decisions.

Therefore, unlike before when you have a lot of investments in one industry, a lot of start-up companies would chase you and offer you to become an investor in their company, because now start-up companies would also look at the diversity of your investments so that they can also benefit from it from your own knowledge about other industries. So if you are still starting in investing, then you need to make quality and diverse investments if you want to make a name for yourself and you will not be the one who will go to companies and present yourself as an investor but it will be the companies that will voluntarily ask you to invest in their company.