Advertisements
Advertisements
प्रश्न
Distinguish between:
Primary Market and Secondary Market
अंतर स्पष्ट करें
Advertisements
उत्तर
| Points | Primary Market | Secondary Market |
| 1) Meaning | The issue of new shares by the company is done in the primary market. | The securities issued earlier are traded in the secondary market. |
| 2) Mode of Investment | Direct investment in the securities. Securities are acquired directly from the company. | Indirect investment as the securities are acquired from other stakeholders. |
| 3) Parties in action | The parties dealing in this market are companies and investors. | The parties dealing in this market are only investors. |
| 4) Intermediary | The underwriters are the intermediaries. | The security brokers are the intermediaries. |
| 5) Value of security | The price of security in the primary market is fixed as it is decided by the company. | The price of a security is fluctuating, depending on the demand and supply conditions in the market. |
shaalaa.com
क्या इस प्रश्न या उत्तर में कोई त्रुटि है?
