Types of fixed income
Primary Market Benefits:
- 1. Companies can raise their capital at minimal costs.
- 2. An excellent approach to reduce risk with diversification.
- 3. Lack of market fluctuations.
- 4. Primary market is highly liquid because securities can be sold immediately.
- 5. This market has the potential to attract direct foreign investors.
- 6. Lower price manipulation.
Secondary Market Benefits:
- 1. Secondary market trading is accessible, as it doesn’t require a surplus of capital or funds.Secondary market trading is accessible, as it doesn’t require a surplus of capital or funds.
- 2. Analyzing a company’s relevance and performance is easy, by simply evaluating stock prices.
- 3. This market offers consumers informative insights about the company’s financial health.
- 4. victors can sell and buy stocks easily, ensuring liquidity.
- 5. Investors can generate an incredible profit in a shorter time.