Economic Function The primary market is the"new securities market where securities are sold to the public for the first time The secondary market is the"used securities market, where previously issued securities are traded among security holders Strong C3-The Marketplace 3-6
3 - 6 Strong C3 – The Marketplace The primary market is the “new securities” market where securities are sold to the public for the first time. The secondary market is the “used securities” market, where previously issued securities are traded among security holders. Economic Function
Economic Function Dollar Holdings Investor Group billions of Total Household sector 6,579 38.70% State/local governments 115 0.68 Rest of world 1,712 10.07 Bank trusts/estates 315 185 Life insurance companies 938 5.52 Other insurance companies 179 1.05 Private pension funds 1999 11.76 State/local retirement funds 1937 11.39 Mutual funds 3.226 18.98 Total $17,000 100.00 Strong C3-The Marketplace 3-7
3 - 7 Strong C3 – The Marketplace Dollar Holdings Investor Group (billions) % of Total Household sector $6,579 38.70% State/local governments 115 0.68 Rest of world 1,712 10.07 Bank trusts/estates 315 1.85 Life insurance companies 938 5.52 Other insurance companies 179 1.05 Private pension funds 1,999 11.76 State/local retirement funds 1,937 11.39 Mutual funds 3,226 18.98 Total $17,000 100.00 Economic Function
Continuous Pricing Function Capital markets enable market participants to get accurate, up-to-date price information Strong C3-The Marketplace 3-8
3 - 8 Strong C3 – The Marketplace Capital markets enable market participants to get accurate, up-to-date price information. Continuous Pricing Function