Secondary Market Liquidity

The term secondary market liquidity is primarily used in the fields of business, investment or economics. The term secondary market liquidity is used to mean the quality of a security to be transferred at the least possible loss of value and least possible price change.
The speculators and the market makers are important in the context of determining the liquidity of a secondary market. They are responsible for providing the capital, that helps to bring about liquidity.

Also Explore: Secondary Market

Secondary Market Securities’ Liquidity

The securities that are traded in the secondary markets and have a certain degree of liquidity possess some characteristics.
They may be enumerated as below:

  • They can be sold quickly
  • They can be sold at anytime within the trading hours
  • They can be sold with the minimum loss of value

Bond Market Rates
There are two different types of bonds in the market as per the rates – the fixed rate bonds and the floating rate bonds. In the fixed rate bonds the interest rate stays the same. It never changes throughout the entire term period of the bond.

The interest rate of the floating rate bonds are determined by a money market index. In the floating rate bonds a spread is grouped together with the rates of the governmental funds. The spread stays the same throughout the term period of the bonds.

The interest on the floating rate bonds are normally paid after every three months. There are certain bonds like the zero coupon bonds, which do not require the payment of interest.
Treasury Bill Rates
The maturity period for the treasury bills in the United States is not more than a year. There are other treasury bills available as well. Those treasury bills have maturity periods of one, three or six months. The minimum worth of a treasury bill is a thousand US dollars. The maximum price of a treasury bill is five million US dollars.

More Information About Capital Market
Primary Market Secondary Market Primary Vs Secondary Market
Global Capital Market Capital Market Companies Capital Market Reform
Venture Capital Market Capital Market Transactions Capital Market Line
Capital Market Services Capital Market Securities Capital Market Liberalization
Secondary Infrastructure Fund Capital Market Risk Capital Market Integration
Capital Market Instruments Equity Capital Market Efficient Capital Market
Debt Capital Market Capital Market Consultants Capital Market Conditions
Market Regulation Committee Capital Market Assumptions Capital Market Trends
Capital Market Theory Role Of Capital Market Risk Advisor
Capital Market Regulations Capital Market Investment Capital Market Research

Last Updated on : 22 July 2016

This website is up for sale at $20,000.00. Please contact 9811053538 for further details.