Distinguish between Primarymarket and Secondary Market.
|Sr||Points||PRIMARY MARKET||SECONDARY MARKET|
|1||Meaning||The market is utilized for raising fresh capital in the form of shares and debentures.||It is a market where existing securities are resold or traded.|
|2||Function||The function is to raise long term funds through fresh issue of securities.||The function is to provide continuous and ready market for existing long term securities.|
|3||Participants||The participants are financial institutions, mutual fund, under writer, individual investor.||The participants of primary market as well as the stock brokers and the members of the stock exchange are the participants.|
|4||Listing Requirements||Listing is not required in the case of primary market.||Only listed securities can be dealt in the secondary market.|
|5||Determinants of Prices||The prices are determined by the management of the corporate houses with due compliances with the SEBI requirements for new issue of securities.||
in case of secondary market the prices are determined by forces of demand and supply in the market and they keep on fluctuating.
Concept: Concept of Financial Markets
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