How are bonds traded? (1)
When the issuer first offers new issues, that first trading is done in the primary market, where the money raised from the sale of the bonds goes directly to the issuer for its use.
Subsequently, the bonds can be bought and sold among other investors, and this is referred to as the secondary market.
The secondary market provides liquidity to buyers of the bonds who are now able to sell the bonds before the maturity date, should they wish to do so.
Showing posts with label How are bonds traded? (1). Show all posts
Showing posts with label How are bonds traded? (1). Show all posts
2007-09-23
Bonds (13)
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