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All the money in stock market (secondary market), what is the usefulness? |
When company issue stocks, they try to raise capital to extent their business, apart from that, later, there's new money circulation independently in secondary market. The money collected getting bigger, and most less often diminished. The secondary market makes the primary market work. If there was no secondary market, far fewer people/institutions would be interested in the primary market. Why buy a new issue if there is no where to sell it later? |
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