What is meant by 'Primary Market'?
Differentiate between 'Primary Market' and 'Secondary Market' on any four points.

Open in App

Solution

The Primary Market, also known as a New Issue Market, is where new securities are issued – it is part of the capital market. Corporations, national and local governments, and other public sector institutions can get financing through the sale of new stock or bond issues through the primary market.

BASIS primary market secondary market
Meaning The marketplace for new shares is called primary market. The place where formerly issued securities are traded is known as Secondary Market.
Type of Purchasing direct indirect
Financing It supplies funds to budding enterprises and also to existing companies for expansion and diversification. It does not provide funding to companies.
Price Fixed Fluctuates, depends on the demand and supply force

Suggest Corrections

Similar questions

What is meant by primary market ? Explain any two methods of floating new issue in the primary market.

What are primary markets? State any two features of the primary market.

Join BYJU'S Learning Program

BASIS	primary market	secondary market
Meaning	The marketplace for new shares is called primary market.	The place where formerly issued securities are traded is known as Secondary Market.
Type of Purchasing	direct	indirect
Financing	It supplies funds to budding enterprises and also to existing companies for expansion and diversification.	It does not provide funding to companies.
Price	Fixed	Fluctuates, depends on the demand and supply force