1. Secondary market:

The secondary market is also known as the stock market or Stock exchange. It is a market for the purchase and sale of existing securities. It also provides liquidity and marketability to existing securities 

2. Functions of a Stock Exchange:

a. Providing Liquidity and Marketability to Existing Securities:

Stock Exchange provides a ready and continuous market for the sale and purchase of securities.

b. Pricing of Securities: 

A stock exchange is a mechanism of constant valuation through which the prices of securities are determined. It is based on the forces of demand and supply.

c. Safety of Transaction:

Stock exchange has its own well defined rules and regulations. This ensures safety and fair dealings to investors.

d. Contributes to Economic Growth:

Stock exchange provides a platform by which savings are channelised into the most productive investment proposals, which leads to capital formation and economic growth.

e. Providing Scope for Speculation:

Stock exchange provides scope within the provisions of Law for speculation in a restricted and controlled manner.

f. Economic barometer:

A stock exchange serves as a barometer of a country’s economic condition. Price trends in stock exchange indicate whether economy is going through boom or depression.

3. Differences between Primary Market and Secondary Market: