Question
Differentiate between primary market and secondary market.
| S. No. |
Basis
|
Primary market
|
Secondary market
|
| 1. |
Meaning
|
Primary market deals with the trading of newly issued securities.
|
Secondary market is that part of capital market which deals in already issued securities.
|
| 2. |
Role of the issuing company
|
Issuing company plays an active role as shares are sold directly to the investors.
|
The company has no role to play as securities are traded between investors only.
|
| 3. |
Determination of Price
|
Price is determined by the company.
|
Price is determined by the market forces of demand and supply.
|
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