What is the difference between primary market and secondary market?

[Sridhar]

The difference between the primary market and the secondary market is that in the primary market, investors buy securities directly from the company issuing them, while in the secondary market, investors trade securities among themselves.

[Rohit Agarwal]

There is difference between Primary Market and Secondary Market

Primary Market, shares are issued for the first time by companies. Primary Market involves IPO, FPO etc.

Whereas in Secondary Market, already issued shares are traded.

[Ranjani Arumugam]

Primary market- where the investors buy shares directly from companies which are going public, and the ones which are going public for the first time; their shares are called IPO’s.

Secondary market – is the stock market. And it is called secondary because the shares are not bought for the first time, they are ‘seconds’. The place where these existing shares are traded i.e bought and sold, is the stock market.

[Aravind S]

<span style=”color: #777777; font-family: ‘Roboto Slab’; font-size: 13px;”>In Primary Market,one can buy Buy shares directly from the companies through (IPO) Initial Public Offer.</span>

<span style=”color: #777777; font-family: ‘Roboto Slab’; font-size: 13px;”> In Secondary Market,one can Buy Shares through Broker / Traders from NSE & BSE.</span>

[Vimal Kumar]

In general, IPO is a primary market, where the shares are bought directly from the company first hand by the public. The stock market is known as the secondary market, where the share holders can sell or buy  to/from another share holder which is the second hand transaction.

[Author]

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