The stock price in the secondary market is determined completely by the fluctuations in demand and supply of the particular stocks. However the stock price in secondary market, of different types of shares are separate from each other.
The prices of stocks, that are liquid and are often traded in the secondary markets, are liable to fluctuate throughout the entire duration of the transactions. However, the investors can keep track of the changes in the prices through the various trading screens.
Secondary Market Stock Price Volatility
The share prices in the secondary market can change due to a variety of reasons. Quite often it has been seen that the stock prices are changing in the secondary market, owing to unfair practices adopted by the operators.
Secondary Market Stock Price Limits
The prices of stocks in the secondary market are fixed by stating the upper and lower limits of the stock prices. These arrangements are made on a daily basis.
The basic idea behind this exercise is to determine the range, within which the price of a stock may move for a certain trading day.
Such measures are usually adopted in order to look after the interests of the traders. Through these limits the efforts are made to try and limit the extent of damage that could be caused by any irregularity in the movement of stock prices in the secondary market.
The prices of stocks in the secondary market are fixed for a day of trading, based upon a wide variety of factors like the price of the particular share or retail share holding.
Last Updated on : 22 July 2016