Mastergp
Verified member
In a business we have primary and secondary business and each has it specific important plaid in the business first let look at what they are all about:
Primary market:
This is the market for new long term capital. The primary market is the market where the securities are sold for first time. Therefore it is also called New issue market. In a primary issue, the securities are issued by the company directly to investors. The company receives the money and issue new security certificates to the investors. The primary issues are used by companies for the purpose of setting up new business or for expanding or modernizing the existing business.
The primary market performs the crucial functions of facilitating capital formation in the economy. Borrowers in the new issue market may be raising capital for converting private capital into public capital.
The methods of issuing securities in the primary market are through initial offering,rights issue that is to say for existing companies, preferential issue.
Secondary market:
The secondary market is the financial market for trading of securities that have already been issued in an initial private or public offering.
In other words, secondary market can be deer to as the market for any kind of used gods. The market that exists in a new security just after the new issues, this is also known as aftermarket.
Primary market:
This is the market for new long term capital. The primary market is the market where the securities are sold for first time. Therefore it is also called New issue market. In a primary issue, the securities are issued by the company directly to investors. The company receives the money and issue new security certificates to the investors. The primary issues are used by companies for the purpose of setting up new business or for expanding or modernizing the existing business.
The primary market performs the crucial functions of facilitating capital formation in the economy. Borrowers in the new issue market may be raising capital for converting private capital into public capital.
The methods of issuing securities in the primary market are through initial offering,rights issue that is to say for existing companies, preferential issue.
Secondary market:
The secondary market is the financial market for trading of securities that have already been issued in an initial private or public offering.
In other words, secondary market can be deer to as the market for any kind of used gods. The market that exists in a new security just after the new issues, this is also known as aftermarket.
