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Primary market is the place where IPOs are issued, and shares are distributed to the public for the first time. The secondary market is the avenue for buyers and sellers where they can sell or buy their shares to realize money. This provides a separate market for the share holders to sell or buy shares so that they do not have to contact the company for these transactions.
Primary market – Equity Shares are being traded through IPO ( Initial public offer) for the first time by the company itself @ fixed price & shares are allotted to the share holders through a pro-rata arrangement basis the no of subscription received . This is done without the involvement of stock market .
Secondary market – Market where the buyers & sellers meet in a virtual platform and trade shares through stock market . basically it is the place where resale of IPO shares take place.
Individuals goes to primary market to purchase the initial public offering when a entity comes public, where as when the individual like to covert the ownership to monetary benefits he/she will come to secondary market to sells the share.
In primary market, entity is the seller and Individual are buyers where as in secondary market individuals act as buy/seller depends on the stock holdings.
The trade happen in primary are limited in terms of activity where as in secondary market there is no limitation
Only buy order executed in primary market where both executed in secondary market.
The difference as vast 🙂
Primary market is the Initial Public offer (IPO) market. Equities are available in the market when the IPO happens .
Secondary market is the market where shares of listed companies are traded throughout the lifetime of the company and as long as it is listed in the exchange.
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