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Question
What Is the Difference Between a Primary and a Secondary Market?
What Is the Difference Between a Primary and a Secondary Market?
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Solution
Differences between primary market and secondary market are as follows:
- Primary market is the market where the stocks and bonds are issued directly by the company in the form of IPO (Initial Public Offering) whereas a secondary market is that market where already issued stocks are traded among investors through a securities exchange or over the counter trading.
- Price of shares issued in the primary market is always at par while in a secondary market the share price varies with supply and demand.
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Differences between primary market and secondary market are as follows:
- Primary market is the market where the stocks and bonds are issued directly by the company in the form of IPO (Initial Public Offering) whereas a secondary market is that market where already issued stocks are traded among investors through a securities exchange or over the counter trading.
- Price of shares issued in the primary market is always at par while in a secondary market the share price varies with supply and demand.
Also read:
Stay connected to BYJU’S for more such questions and answers on various commerce topics.
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