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What are Primary and Secondary Markets?

In the primary market, the investors can invest in the company’s shares directly from the company and raise their capital. The company’s issue shares the first time in the primary market, From here, the shares are bought by the investors.

On the other hand, the stocks which are already offered to the buyers in the primary market are traded. The secondary market has equity and debt markets where listed equities can be traded. The secondary market is basically for those companies who have already entered into the stock exchange market previously through primary market.

In the primary market, the shareholders can also trade shares which they have purchased from the primary market.

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