The Primary Mortgage is that relationship that exists between a lender and a potential borrower. on the other hand, the Secondary Mortgage Market is the relationship that exists after the loan is closed and the lender markets the collateral of that loan for sale to an investor.
This market consists of investors who buy mortgages from primary lenders, such as banks and thrifts, so that the lenders can use that money to make new loans.
What is transaction what it contains
Both.
conventional loans
The main difference between Fannie Mae (FNMA; Federal National Mortgage Association) and Freddie Mac (FHLMC; Federal Home Loan Mortgage Corporation) is that Fannie May primarily buys mortgages issued by banks and Freddie Mac primarily buys mortgages issued by thrifts. A secondary difference between the two is that Fannie Mae started in 1938 as part of the "New Deal" and Freddie Mac started in 1970 in order to create competition in the secondary mortgage market.
a primary market is financial assets that can be redeemed only by the original investor; a secondary market's assets can be resold
difference between primary and secondary market
the difference is that primary markets are really fat. the secondary market is a skinny kid that doesnt eat candy
An example of a primary market transaction would be the act of someone buying a brand new car. A secondary market transaction would be someone buying a used car.
This market consists of investors who buy mortgages from primary lenders, such as banks and thrifts, so that the lenders can use that money to make new loans.
primary market is where the stocks are first sold and secondary market is where the rest of the business process continues.
The primary market is where companies initially sell their stocks or bonds to raise money, while the secondary market is where these securities are traded among investors. View this like selling a new product in a store (primary market) and then upscaling it to be resold in a second-hand market (secondary market). The primary market depends on the secondary market since it delivers a way for investors to easily buy and sell the securities they purchased originally. Without the secondary market, investors might be less eager to buy securities in the primary market since they wouldn't have a stress-free way to sell them later if desired.
It is both a primary and secondary market. A primary market is one in which IPOs are issued and the secondary market is one in which normal shares are traded. The Aussie stock market called the ASX allows both.
What is transaction what it contains
Primary market can not function well without secondary market because they are interrelated with each other as well as interdependent.
The primary market is the market in which a security is originated, or first sold after issue. The proceeds of the sale go to the issuer. The secondary market is the subsequent market in which the security continues to trade, as it is passed from one investor to another. The primary market and the secondary market both constitute the capital market.
The term 'second mortgage market' refers to all the people who have taken a second mortgage out on a property. This market has dramatically increased in size given the recent economic conditions in the housing market.