What is the difference between primary market and secondary market?

[Tushar Jain]

1. Primary market is where investors buy the shares of a company for the first time during it’s IPO, this is the only time the company raises capital by selling shares.

2. Secondary market is where the general public trades with the shares of the company between themselves and the company does not make any money

 

[Arif Jani]

In primary market, the shares of the company are bought for the first time by retail investors through IPO (Initial Public Offering). Only this time the shares are bought from the company.

The subsequent trade or exchange of shares after the IPO is known as Secondary market. In this market no new shares are brought from the company, only the existing shares are traded between the retail investors or public.

[Harshita]

Primary Market is where the shares are purchased directly from the company at the time of Initial offer.

Secondary market is market where the shares are traded between the participants of the stock market which includes public (retail individual investors)

[Jayashree Venkat]

Primary market is the place where the shares are issued to the public for the first time. (initial public offer) where as the secondary market is a place where the shares are bought and sold.

[Vasanth]

Primary Market – This is where company’s new shares (IPO) are going public.
Secondary Market – This Is where retail investors are trading or exchanging their existing shares.

[Author]

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