The primary and secondary markets are two distinct segments of the financial market. The primary market is where new securities are issued and traded, while the secondary market deals with existing securities that have already been issued. Both markets play an important role in the efficient functioning of the economy.
About Difference Between Primary Market And Secondary Market
| Primary Market | Secondary Market |
|---|---|
| Issues new securities | Trades existing securities |
| Raises capital for companies | Provides liquidity to investors |
| Requires direct participation of issuer | No involvement of issuer |
| Long-term investments | Short-term investments |
| High risk, high return | Low risk, low return |
| Price is determined by the issuer | Price determined by demand & supply |
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