Difference between Primary and Secondary Market | Difference between Primary market and Secondary market

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Hi friends, in today’s article we are going to know about the difference between primary market and secondary market. So let’s discuss in details.

Difference between Primary market and Secondary market

The difference between Primary and Secondary Market are given in the following ground –

(i) The primary market is a form of capital market where the securities are issued for the first time to the investors by the company. On the other hand, when securities are listed on a recognized stock exchange for trading, which is known as a secondary market.

(ii) The prices withinside the primary markets are constant while the prices range withinside the secondary markets depending upon the demand and supply of the securities traded.

(iii) Primary market provides financing to new companies and also to old companies. On the other hand, secondary market does not provide financing to companies, as they are not involved in the transaction.

(iv) At the primary market, safety or security the investor can buy shares without delay from the company. On the other hand, secondary market, when investors buy and sell the stocks and bonds among themselves.

(v) In the primary market, safety may be bought best once, while it may be done an infinite number of instances or times in case of a secondary market.

(vi) The primary market there may be no geographical presence, because it has no organizational setup. On the opposite hand, the secondary marketplace is gift physically, as stock exchange that is situated in a specific geographical area.

FAQs

What is Primary Market?

The primary market is a form of capital market where the securities are issued for the first time to the investors by the company.

What is Secondary Market?

When securities are listed on a recognized stock exchange for trading, which is known as a secondary market.

Conclusion

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Hi, this is Eusub Ali Khan, Author & Owner of KhanStudy.in. I am a Content Writer, blogger and professional web-designer. I love to share my educational knowledge with people.

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