resale market

(noun)

The resale market, also called "secondary market" or "aftermarket," is the financial market in which previously issued financial instruments, such as stock, bonds, options, and futures, are bought and sold.

Related Terms

Examples of resale market in the following topics:

  • Introducing Exchange Rates

    • Exchange rates are determined in the foreign exchange market, which is open to a wide range of buyers and sellers where currency trading is continuous.
    • In the retail currency exchange market, a different buying rate and selling rate will be quoted by money dealers.
    • There is generally a higher exchange rate on documentary transactions (such as for traveler's checks) due to the additional time and cost of clearing the document, while cash is available for resale immediately.
    • In the retail currency exchange market, a different buying rate and selling rate will be quoted by money dealers.
    • Explain the concept of a foreign exchange market and an exchange rate

  • Distribution Centers vs. Direct Store Delivery

    • Depending on customer needs, marketing channel strategies can utilize distribution centers or move products directly to a store.
    • Wholesaling includes all activities required to market goods and services to businesses, institutions, or industrial users who are motivated to buy for resale or to produce and market other products and services.
    • The vast majority of all goods produced in an advanced economy have wholesaling involved in their marketing.
    • Wholesale volume is greater than that of retail because it includes sales to industrial users as well as merchandise sold to retailers for resale.
    • It provides the producer with wide market coverage information about local market trends in an efficient manner.

  • Capital Market

    • A key division within the capital markets is between the primary markets and secondary markets.
    • In primary markets, new stock or bond issues are sold to investors.
    • Money markets and capital markets are closely related, but are different types of financial markets.
    • A key difference is that with a regular bank loan, the lending doesn't take the form of resalable security like a share or bond that can be traded on the markets.
    • The NYSE is one of the largest capital markets in the world.

  • Differential

    • In a theoretical market with perfect information, perfect substitutes, and no transaction costs or prohibition on secondary exchange (re-selling) to prevent arbitrage, price differentials can only be a feature of monopolistic and oligopolistic markets, where market power can be exercised.
    • This usually entails using one or more means of preventing any resale: keeping the different price groups separate, making price comparisons difficult, or restricting pricing information.
    • The boundary set up by the marketer to keep segments separate is referred to as a rate fence.
    • Price differentiation is thus very common in services where resale is not possible, such as airlines and movie theaters.
    • First, the firm must be able to identify market segments by their price elasticity of demand.

  • Types of Marketing Channels

    • Direct selling is the marketing and selling of products directly to consumers away from a fixed retail location.
    • Direct selling often, but not always, uses multi-level marketing (a salesperson is paid for selling and for sales made by people they recruit or sponsor) rather than single-level marketing (salesperson is paid only for the sales they make themselves).
    • They may sell directly to the end users as well as sell to other companies for resale.
    • Using two or more channels to attract the same target market can sometimes lead to channel conflict.
    • Think of making money from the resale of a product or recycling.

  • Activities in Marketing Departments

    • To create an effective, cost-efficient marketing management strategy, firms must possess a detailed, objective understanding of their own business and the market in which they operate.
    • Market Research: Marketing research is the systematic investigation of the facts relevant to various aspects in marketing.
    • Marketing planning: Marketing plans are prepared to achieve marketing objectives of an organization.
    • Buying and Assembling: Buying is the purchase of raw materials for use in manufacture of finished goods for resale.
    • Graded products are of uniform quality and become easy to market.

  • Securities Act of 1933

    • The prospectus, which is the document through which an issuer's securities are marketed to a potential investor, is included as part of the registration statement.
    • Often, the issuer requires that a legal opinion be given indicating that the resale complies with the rule.
    • Notice of resale is provided to the SEC if the amount of securities sold in reliance on Rule 144 in any three-month period exceeds 5,000 shares or if they have an aggregate sales price in excess of $50,000.
    • The regulation includes two safe harbor provisions: an issuer safe harbor and a resale safe harbor.
    • In each case, the regulation demands that offers and sales of the securities be made outside the United States and that no offering participant (which includes the issuer, the banks assisting with the offer, and their respective affiliates) engage in "directed selling efforts. " In the case of issuers for whose securities there is substantial U.S. market interest, the regulation also requires that no offers and sales be made to U.S. persons (including U.S. persons physically located outside the United States).

  • Market/Book Ratio

    • The price-to-book ratio is a financial ratio used to compare a company's current market price to its book value.
    • The price-to-book ratio, or P/B ratio, is a financial ratio used to compare a company's current market price to its book value.
    • In the first way, the company's market capitalization can be divided by the company's total book value from its balance sheet.
    • For companies in distress, the book value is usually calculated without the intangible assets that would have no resale value.
    • It is also known as the market-to-book ratio and the price-to-equity ratio (which should not be confused with the price-to-earnings ratio), and its inverse is called the book-to-market ratio.

  • Sunk Costs

    • For example the research and development of a pharmaceutical are retrospective once it is time to market the product.
    • The company will charge market prices whether R&D had cost one dollar or one million dollars.
    • The sum originally paid should not affect any rational future decision-making about the car, regardless of the resale value.

  • Analysis of Price Discrimination

    • Price discrimination exists within a market when the sales of identical goods or services are sold at different prices by the same provider.
    • The firm must have the ability to prevent arbitration, or resale of the product.
    • The exact price discrimination method that is used depends on the factors within the particular market.
    • It is evident throughout markets and generates the highest revenue possible by shifting the price of a product based on the consumer's willingness to pay, quantity demanded, and consumer attributes.