Secondary markets allow for the determination of the price of the traded financial asset through the interaction of buyers and sellers. They provide a signal for the allocation of funds in the economy, based on the demand and supply, though the mechanism called price discovery processes.

Debt Market is the financial market for trading in Debt Instrument (i.e. Government Bonds or Securities, Corporate Debentures or Bonds).

Equity Market is the financial market for trading in Equity Shares of Companies.

A market where in financial instruments such as financial claims, assets and securities are traded is known as a financial market.

(i) The financial market provides financial assistance to individuals, agricultural sectors, industrial sectors, service sectors, financial institutions like banks, insurance sectors, provident funds and the government as a whole.
(ii) With the help of the financial market all the above stated individuals, institutions and the Government can get their required funds in time.
(iii) Through the financial market the institutions get their short term as well as long term financial assistance.
(iv) It leads to the overall economic development.

(i) Secondary market may be defined as the market for old securities, in the sense that securities which are previously issued in the primary market are traded here.
(ii) The trading takes place between investors who follow the original issue in the primary market.
(iii) It covers both stock exchange and over the counter market.

The financial market two functions:
I. Intermediary Functions
II. Financial Functions
I. Intermediary Functions: The intermediary functions of a financial market include the following
(i) Transfer of resources: Financial markets facilitate the transfer of real economic resource from lenders to ultimate borrowers.
(ii) Enhancing Income: Financial markets allow lenders earn interest / dividend on their surplus investible funds and thus contributing to the enhancement of the individual and the national income.
(iii) Productive Usage: Financial markets allow for the productive use of the funds borrowed, thus enhancing the income and the gross national income
(iv) Capital Formation: Financial markets provide a channel through which new savings flow to aid capital formation of a country
(v) Price determination: 
1. Financial markets allow for the determination of the price of the traded financial asset through the interaction of buyers and sellers.
2. (ii) They provide a signal for the allocation of funds in the economy, based on the demand and supply; through the mechanism called price discovery process.
(vi) Sale mechanism: Financial market provides a mechanism for selling of a financial asset by investor so as to offer the benefits of marketability and liquidity of such assets.
(vii) Information: The activities of the participants in the financial market result in the generation and the consequent dissemination of information to the various segments of the markets, so as to reduce the cost of transaction of financial assets.
II. Financial Functions
1. The financial functions of a financial market include the following
(i) Providing the borrowers with funds so as to enable them to carry out their investment Plans.
(ii) Providing the lenders with earning assets so as to enable them to earn wealth by deploying the assets in productive ventures.
(iii) Providing liquidity in the market so as to facilitate trading of funds