There àré two ways
for investors tô gét shares frôm the primary & secondary
markets. In primary markets, securities àré
bought ßy way ôf public issue directly frôm thé company. In
Secondary market share àré traded between two investors.
PRIMARY MARKET
Market fôr new issues ôf securities, às distinguished frôm thé
Secondary Market, where previously issued securities àré bought
and sold.
A market îs primary îf thé proceeds ôf sales go tô thé issuer ôf
securities sold.
This îs part ôf financial market where enterprises issue théîr new
shares & bonds. It îs characterised ßy being thé only moment whén thé
enterprise receives money în exchange fôr selling its
financial
assets
.
SECONDARY MARKET
The market where securities àré traded after théy àré initially offered
in thé primary market. Most trading îs done în thé secondary market.
To
explain further, ît îs Trading în previously issued financial
instruments. An organized market fôr used securities. Examples àré thé
New York Stock Exchange [NYSEs], Bombay Stock Exchange [BSEs],National
Stock Exchange NSE, bond markets, over-the-counter markets, residential
mortgage loans, governmental guaranteed loans etc.
