What is difference between Primary Market and Secondary Market?



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What is difference between Primary Market and Secondary Market?

3 Answer(s)


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In the primary market, investors buy securities directly from the company issuing them, while in the secondary market, investors trade securities among themselves.The secondary market is where securities are traded after the company has sold all the stocks and bonds offered on the primary market.

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The Primary market refers to the market where new securities are issued for the purpose of obtaining capital.
The secondary market refers to the market where securities that have already been issued are traded. Instruments that are usually traded on the secondary market include stocks, bonds, options and futures.

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primary market is used to bring in new issues (from company to shareholders) and secondary market is where shares are traded from one another

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