paraphrasing 142

Paraphrasing: Changing the sentence format and syntax, as well as changing the order of sentences, not just changing vocabulary

Why secondary markets are so important to raise capital?

Answer: –

A secondary market is any market where owners of outstanding securities can sell them to other investors.
Secondary markets are like used-car markets in that they allow investors to buy or sell previously owned securities for cash.
Secondary markets are important to corporations as well because investors are willing to pay higher prices for securities in primary markets if the securities have active secondary markets.
Thus, companies whose securities have active secondary markets enjoy lower funding costs than similar firms whose securities do not have active secondary markets.
Secondary markets are important because they enable investors to convert securities easily to cash.
Business firms whose securities are traded in secondary markets are able to issue new securities at a lower cost than they otherwise could because investors are willing to pay a premium price for securities that have secondary markets.