difference between primary and secondary market

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Solution

Basis of Difference
Primary Market
Secondary Market
Deals with
Deals with the sale of only new securities
Deals with the sale and purchase of already existing securities.
Role of concerned company
The securities are sold directly by the company to the investors.
The company does not play a role as the securities are exchanged among the investors themselves.
Determination of price of securities
The price of securities is decided by the management of the company
The price of securities is determined by the forces of demand and supply for securities.

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Basis of Difference	Primary Market	Secondary Market
Deals with	Deals with the sale of only new securities	Deals with the sale and purchase of already existing securities.
Role of concerned company	The securities are sold directly by the company to the investors.	The company does not play a role as the securities are exchanged among the investors themselves.
Determination of price of securities	The price of securities is decided by the management of the company	The price of securities is determined by the forces of demand and supply for securities.