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Vikki [24]
3 years ago
14

What is the difference between the primary market and the secondary​ market?

Business
1 answer:
NeX [460]3 years ago
4 0

Answer:

The <u>SECONDARY MARKET </u>is the sale of​ "used" stock in that the current owner sells it to a new owner and the proceeds go to the current​ owner, not the​ company, while the <u>PRIMARY MARKET </u> is the market where the initial sale of common stock is made by a company and the proceeds of the sale go to the company for the newly issued stock.

Explanation:

The primary market is the market where new shares or bonds are sold to investors.Primary market are mainly for setting up new business or for expansion.  On the other hand, secondary market is the market where existing securities are traded among investors.  

The primary and secondary market are both under the capital market which is the market for buying and selling of long term debts or equity backed securities.

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