Question

Why are secondary market transactions useful in evaluating new information about firms? (typed)

Why are secondary market transactions useful in evaluating new information about firms? (typed)

Homework Answers

Answer #1

The secondary market transactions are useful in evaluating new information about firms because
* The Investors purchases& sell cultier amongst the values.The secondary market does not give financial asistance to force .so companies not invalued in transactions.
* The lower transactions due to greater volume ,supplyings& demand are major role in existing price .
* In the secondary market ,the price of amount get for a seansty is income for investor who sells the seater & also from govt. as they are main source of formation of capital.
*The value of an axet changes in an economy of a market since It produces economic efficiency too as they are monthly liked with stocks&bonds they exist.

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