upon creation. An efficient market helps investors when making decisions of where to place their money when considering the financial information of a specific company or asset base on facts. Primary market A primary market is that in which a company’s securities are sold and purchased for the first time for an exchange of money to fund capital to finance its operations. Here the role a primary market has for a company is to create additional funds to expand, grow and even finance a company’s future. Secondary market A secondary market makes it possible for companies to trade securities between individual investors or corporations. A secondary market roles is to present a platform where these transactions are available to all.
FINANCIAL TERMS & ROLES
Risk Risk is the degree of uncertainty a specific asset has in response to its expected and realistic return on investment. The role of risk within finance is the change that is taken in order to see if the investment is a viable one of a wrong opportunity. Security Security is known as a document that confirms the ownership of an asset, bond or any investment within a company. The role of a security in finance...