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Primary market- This is done through IPO where the company directly issue there share to the owner.
Secondary market – This is processed by the Stock Exchange where the buyers and sellers executes their trading.
Fresh shares as IPO – Primary market
Old or more than once traded shares – Secondary market
In both these cases, shares are being traded.
Primary Market – This is the online portal nowadays to get the with the initial public offer (IPO) to get with the shares. Necessarily need to be an IPO so it can be called as primary market.
Secondary Market – These are known as the stock exchanges such that we can sell or buy the shares which is obviously the second market and not a first hand share.
primary market is where the seller is the promoter / MD of the company , he/she issues application for IPO and the buyer of this market is the public who applies for IPO , the buyer becomes share holder of the company as soon as he is allocated with the equity . here once the stock is sold it cannot be withdrawn or refunded .
In order to overcome that we go for secondary market where the stocks or equities are being transferred or sold to traders depending on the supply and demand.. the one who sells the stock is sellers n buys it is said to be buyers .. this is the diff btwn primary n sec markets
Primary market is a place where the company comes for offering for the first time. They give huge advertisement and shares of the company are offered to the public.
Secondary market is also called stock market, where the public who invested the money in the form of shares for the first time can sell/transfer his shares to another person in this market and get back his money without disturbing the company.
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