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A company issues shares to the public investors for the first time through IPO for the subscription of authorised capital in the primary market , the shares are traded in the secondary market that is the stock exchange by the traders or invertors at market price ,which is decided by demand and supply for the shares of a company.
In primary market, only the stock issuing company and the investors will involve where the investors will act as BUYERS and the issuing company will act as SELLERS.
In secondary market, the stock issuing company will not involve in any transactions rather the investors will act as BUYERS or SELLERS among themselves for the publicly traded securities.
primary market
Investers buy securities directly from the company issuing them
secoundary market
Investers trade securities among them sell and company with the security being traded does not
Primary market is where the shares of the company issued to the public for the first time theough ipo
Secondary market is the market where shares bought from primary market are traded.
we can classify the share market into two divisions.those are primary market and secondary market.if a company wants to expand its business it offers its shares to the investors with or without preimium in primary market.Later it list its company in any registered exchange like nse or bse those are called secondary market.
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