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What is meant by a primary and a secondary market?

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2010-02-05 20:46:19
2010-02-05 20:46:19

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

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

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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.

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

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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.

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

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A primary market is the main market to which you are selling.A secondary market is an additional market to which you are selling.AnswerA primary offering, such as with a corporate bond, means you are buying it directly from the issuer, at par value, usually. A secondary market is where you sell or buy existing issues. I.E. If you bought a bond last year, now need to get your principal, you can sell it in the secondary market. You may not get par value. If rates are up since you bought the bond, then you will likely have to sell it at a discount to be able to get rid of it. If rates have fallen since you bought it, you could get a premium for it..

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Primary market where Shareholders buy their share directly from Organization when its launch IPO and secondary market where buy and sell of share takes place among the shareholders. Regards Nandeep Singh singhnandeep@yahoo.co.in

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

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

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

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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.

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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.

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

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Primary Market:- Whenever any company wants to raise money, it can done by floating its shares in the share market. When such shares are issued for the 1st time in the share market, it is called as IPO (Initial Public Offering) and the further issue is called FPO (Follow on Public Offer). Primary market consists of IPO and FPO. Tata steel coming with further issuance of shares is an example of FPO. Secondary Market:- once the shares are listed on the market, they can be traded on the exchange. the market where such trading takes place is called as secondary market. trading on BSE, NSE, Dow Jones etc is an example of secondary market.

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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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