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Which type of secondary market provides the most efficient market for financial securities?

Which type of secondary market provides the most efficient market for financial securities?

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Answer #1

The broker market is the most efficient secondary market.

Secondary market is that market where financial securities are offered to the general public after they have been offered in the primary market. Secondary market for financial securities can be divided into direct search market, broker market, dealer market and auction market.

Of these the broker market is the most efficient since they have conducted extensive research about the financial securities. They have maximum and in depth information about the prices as well as Trends of the securities. They earn commission on the trading of the financial securities.

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