Distinguish between the following.
Primary market and Secondary market
|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||The securities are acquired directly from the company. It involves direct investment in securities.||The securities are acquired from other stakeholders. It involves indirect investment in securities.|
|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 a 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|
Concept: Types of Financial Market - Secondary Market
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