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Tagged: Primary Market, Secondary Market
What is the difference between primary market and secondary market?
Primary Market is where the company issues shares directly to public to raise capital for their business expansion.
Secondary Market is where the shares issued in the primary market are traded (bought/sold).
Primary market means the shares are directly purchase from the company,
Secondary market means the shares are purchase and sold in between the public it self it is known as secondary market.
Primary Market is the place where the promoter calls for initial funding for the company, through mass advertisement(IPOs) and public can get the shares from the company.
Secondary Market is the stock Market or stock exchange where retail people can buy or sell the shares.
PRIMARY MARKETS means the company itself sells shares directly to the public initially for fundsraising.
But in SECONDARY MARKETS i.e STOCK EXCHANGES the primary shares are tranferred to a SECOND party.
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