<Tr> <Td> </Td> <Td> This article does not cite any sources . Please help improve this article by adding citations to reliable sources . Unsourced material may be challenged and removed . (June 2012) (Learn how and when to remove this template message) </Td> </Tr> <P> Securities market is a component of the wider financial market where securities can be bought and sold between subjects of the economy, on the basis of demand and supply . Securities markets encompasses equity markets, bond markets and derivatives markets where prices can be determined and participants both professional and non professionals can meet . </P> <P> Securities markets can be split into below two levels . Primary markets, where new securities are issued and secondary markets where existing securities can be bought and sold . Secondary markets can further be split into organised exchanges, such stock exchanges and over-the - counter where individual parties come together and buy or sell securities directly . For securities holders knowing that a secondary market exists in which their securities may be sold and converted into cash increases the willingness of people to hold stocks and bonds and thus increases the ability of firms to issue securities . </P> <P> There are a number of professional participants of a securities market and these include; brokerages, broker - dealers, market makers, investment managers, speculators as well as those providing the infrastructure, such as clearing houses and securities depositories . </P>

Companies that guarantee to sell issues of securities