There are two types of financial markets and they are the primary and secondary markets
. Financial claims are initially sold by borrowers in the primary financial markets. All financial claims have primary markets. An example of a primary market transaction is IBM Corp. raising external funds through the sale of new stock or bonds.
People are more likely to purchase a primary financial claim if they believe they will not have to hold it forever as is the case in most common stock or until its maturity date such as the case of bonds or with the best forex trading. Secondary financial markets are like used-car markets. They let people exchange used order previously issued financial claims for cash at will. Secondary markets provide liquidity for investors who own primary claims. Securities can only be sold once in a primary markets and all subsequent transactions take place in the secondary market. The New York Stock Exchange or otherwise known as NYSE is an example of a well known secondary market.
This is the stock market as we know it. What was inconceivable 500 years ago is a large field that in engrosses many of the top minds and captivates consumers of all levels. Much theorizing and analysis is done on the price action of these stocks and complex indicators known as the indexes can simultaneously produce elation and terror investors around the world. When investing there is such a thing known as systematic risk even if you act on the latestforex trading tips. This means that an investor can avoid risk of the stock market by not investing in stocks. This is folly. While you can avoid a direct risk one cannot avoid indirect risk and it is something that is born by all participants in an economy. So it would not be unwise to put all your eggs in one basket but you better keep your eyes in that basket.