Apart from the availability of prize bonds in State Bank, National Saving centres and designated branches of commercial banks, these bonds are also traded in the secondary market. This chapter elaborates on how the secondary market works, along with their advantages, and a future outlook as per Pakistan’s perspective.
There is a complete market that is working on the dealings of prize bond in the main cities of Pakistan
Various dealers and brokers maintain stocks of prize bonds. They sell it at a profit to earn money. Although it is costlier to buy prize bonds from secondary markets as compared to the primary market, there are many different reasons why people still prefer them.
Due to the above-mentioned benefits, investors prefer buying prize bonds from the secondary market even if they are more expensive. The bonds available here usually have a duration that has already passed its two- months’ requirement. Hence, buyers do not have to wait any longer to be eligible for the prizes. The closer the date of draw arrives, the premium on these prize bonds increase.