Once a bond is available on the
secondary market,
the company receives no additional cash when it is traded. However, just as with stocks, investors who profit from the trades will add fuel to the capital markets either by making new investments or stashing earnings in savings accounts, adding to the funds available for banks to lend to businesses.
And since healthy capital markets are fueled by a healthy economy, companies hope that the capital markets will continue to grow, widening their potential customer base as well as future available capital.
Professor Samuel L. Hayes,
Harvard Business
School
Market ups and downs
The secondary bond market receives more investor attention when stocks are performing poorly, since bonds tend do well under the same circumstances that cause stock prices to suffer — and vice versa.
And since healthy capital markets are fueled by a healthy economy, companies hope that the capital markets will continue to grow, widening their potential customer base as well as future available capital.
Professor 