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Tagged: Primary Market, Secondary Market
Primary market is the first place where public can purchase the company’s share. It is done through IPO (Initial Public Offering). The company’s promoter opens the shares to the public through advertisements.
Secondary market is the share market. Public can buy and sell shares of a company through share market but the share are not bought or sold for the very first time
Primary Market:
<p style=”text-align: left;”>Secondary Market:</p>
The primary market is were the stocks are offered for the first time from which the company gains a huge amount to expand their business. eg. IPO
The secondary market is were the shares which are bought from the primary market are traded. Here the company does not have any role to play, in turn the exchange facilitates the trading. eg. BSE, NSE
In primary market, the company directly sells the shares to public and there is no intermediary involved. Where as in secondary market, the shares are traded only through stock exchange. Stock exchange acts as intermediary.
We bought & sell the shares at any time in secondary market. But in primary market we bought the shares only when company issue the IPO and we can’t sell in primary market.
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