Question
Differentiate between ‘Primary Market’ and ‘Secondary Market’.
Solution
Difference between Primary Market and Secondary Market:
|
Basis of Difference |
Primary Market |
Secondary Market |
|
1. Issue |
Securities (like shares) are issued for the first time. |
There is no issuing of the fresh securities but trading of the already issued securities. |
|
2. Buying and Selling |
Investors can only buy securities. |
Both buying and selling can take place. |
|
3. Specified Place |
It has no specified place. |
It has a special and fixed place known as stock exchange. |
