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Can primary market function without the existence of secondary market?
Wiki User
∙ 12y ago
Yes, the primary market can function without the existence of a secondary market, but it may face some challenges:
Lack of Liquidity: Without a secondary market, it can be difficult for investors to sell the securities they purchased in the primary market. This means they may need to wait for a long time before they can realize returns on their investments.
Uncertain Valuation: Without a secondary market, investors may find it challenging to determine the value of the securities they hold, as they lack the pricing information provided by the secondary market.
Lack of Diversification: In the absence of the ability to sell securities in the secondary market, investors may struggle to diversify their investment portfolios, increasing investment risks.
While the primary market can operate independently, the presence of a secondary market helps enhance liquidity and price discovery, making markets more efficient and attractive to investors.
khalid asmi
Benjamin Ikechi
Anuttara Londhe
While the primary market can officially function without a secondary market, it may not be as well-organized. In this situation without a secondary market, investors may be unwilling to purchase securities in the primary market because they wouldn't have an easy way to sell them later if desired. However, there are instances, like private placements, where securities are sold directly to investors without the intention of trading them in a secondary market.
Wiki User
∙ 12y agoNo. If there is no secondary market where people can buy/sell shares, nobody will buy shares from the primary market
Benjamin Ikechi
Benjamin Ikechi
No it cannot fashion because the primary marketing is twins produce by secondary marketing is to help people to buy and sell in big ways
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Primary markets can not function well without secondary markets?
Primary markets can not function well without secondary markets
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To electrically isolate the secondary circuit from the primary circuit, without changing the voltage.
What are the voaltg in isolation transformer?
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Removing the primary colors in secondary colors?
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Because there would be no secondary colors without primary colors mixing together.
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you cant
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No because the primary industry do the crops and the secondary industry use the crops to make materials and if there's no crops how would the secondary industry make the materials
What is a secondary opinion?
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Is secondary sources are easier to find than primary sources to evaluated integrity?
Secondary sources are generally easier to find than primary sources because they summarize or analyze information from primary sources. However, in terms of evaluating integrity, primary sources are generally considered more reliable as they provide firsthand information without interpretation or bias that may be present in secondary sources.
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Why are primary colors important to a child's environment?
Primary colors are important because without them we would not have any secondary colors or any other colors
