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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.

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โˆ™ 2010-02-05 20:46:19
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Q: What is meant by a primary and a secondary market?
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Related questions

How is the primary market dependent on the secondary market?

Primary market is dependent on secondary market for liquidity. Secondary market provides liquidation to the investors.

What is the meaning of primary market and secondary market in share market?

primary market is where the stocks are first sold and secondary market is where the rest of the business process continues.

Can primary market function without the existence of secondary market?

No. If there is no secondary market where people can buy/sell shares, nobody will buy shares from the primary market

What is difference between a primary market and a secondary market?

a primary market is financial assets that can be redeemed only by the original investor; a secondary market's assets can be resold

Is the Australian Stock Exchange a primary or a secondary market?

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.

Can primary market exist without Secondary market?

Primary market can not function well without secondary market because they are interrelated with each other as well as interdependent.

Distinguish between primary and secondary market?

The primary market transaction is a first time sale of stocks. Secondary market, on the other hand, is when the stock is sold from person to person.

Is a primary market a financial market in which pre-owned securities are traded?

secondary market

What are four markets for financial assets?

Capital Market, Money Market, Primary Market and Secondary Market.

Distinguish between a primary market and secondary market how does the secondary market aid the effectiveness of the primary market?

Securities generally have two stages in their lifespan. The first stage is when the company initially issues the security directly from its treasury at a predetermined offering price. This is a primary market offering. It is referred to as the Initial Public Offering (IPO). Investment dealers frequently buy initial offerings on the primary market and resell the securities on the secondary market.

Is NYSE primary or secondary stock market?


Which are the major differences between a primary and a secondary market?

A primary market will be the intended target market to which a company originally might have produced it's products or services for and the larger source of revenues. The secondary market will be a market that is marketable but not the first priority of sustainability for the company.

Difference between primary market transaction and a secondary market transaction?

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.

Explain the difference between primary and secondary market research data give an example of each and explain how each helps define a business customer?

difference between primary and secondary market

What is Bradex?

Bradex is the name of any plate sold on the secondary market. The secondary market is the trading, purchasing and selling of plates recently sold on the primary market by The Bradford Exchange.

What is meant by the term secondary color?

A secondary colour is two primary colours mixed together on the colour wheel.

What is meant by primary and secondary insurance coverage?

Primary insurance coverage is what is first used when a medical service is being rendered. This is what will be billed first. Secondary insurance is supposed to cover what the primary insurance does not.

Difference between primary n secondary markets?

the difference is that primary markets are really fat. the secondary market is a skinny kid that doesnt eat candy

Distinguish between primary markets and secondary markets?

Primary markets are where investors present their initial IPOs. The secondary market is where consumers are able to purchase stocks.

What is the purpose of asx?

The purpose of the asx is to act as a primary market, a secondary market and to provide investor protection

What is a sub market?

A sub market will be an alternative market to which to market to. In other words, a secondary market that originally was not the primary market of your company's goals but fits the profile for marketing to.

What is Money market capital market primary market and secondary market?

What is market where new securities r initially issued and market that mature within one year

What is the difference with primary market mortgage and secondary market mortgage?

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.

Why Corporations do not actually raise funds in secondary market they are less important to the economy than primary market Comment.?

Because corporations do not actually raise any funds in secondary markets they are less important to the economy than primary market Comment?

Does a company receive money for stocks traded in Secondary market?

No. The stocks traded in the secondary market are considered previously issued securities that do not involve the original issuing company that issued the stock in the primary market. The owners of the stock traded in the secondary market changes when traded and the monetary exchange would be between the original investors from the primary market not the company whose stock is being traded.

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