What benefits are there from buying bonds in the secondary mkt? Why wld it be better priced than in pri mkts?

Answer 1

Its a lot easier to buy in the secondary market - primary market is principally large players. (If you're not clear, primary market is when the bond is just issued, secondary market would be when you call your broker up and tell him to buy it). Pricing between the markets should be equivalent, but in the secondary market you might be able to find a wider variety of payment characteristics. (i.e. bonds trading below or above par will have more/less of their cashflow in the final principal repayment.)

I suppose the disadvantage is that in the primary market you can buy much larger volumes of a given issue without impacting the market.

Answer 2

bill fee is different than broker value. broker value is what the broker relatively will pay the producer for the motor vehicle. Paying bill fee means you probably did ok yet might have finished a sprint greater effectual. additionally they attempt to get you to purchase the paint protectant, fabric protectant, prolonged guarantee and so on. it incredibly is the place they make distinctive income. I worked at a place that did the "paint protection kit" for a dealership. The broker charged everywhere from $one hundred fifty- $250 to the patron. They paid us $50 a unit. We paid $5 for the components. astonishing mark-up huh?