Differentiate between 'Primary Market' and 'Secondary Market' on any five basis
|Basis of Difference||Primary Market||Secondary Market|
|Securities Traded||Sale and purchase of newly issued securities take place in the primary market.||Sale and purchase of already issued securities take place in the secondary market.|
|Issued by||Securities are directly issued by companies.||Securities are among investors, and hence, there is no involve|
|Price||Prices are fixed by the company and its management.||Prices are fixed by forces of
demand and supply.
|Geographical Area||No fixed place for a primary market.||Fixed area and working hours under a secondary market.|
|Purchase and Sale||Securities can only be purchased in the primary market.||Securities can be both purchased and sold in the secondary market|
|Capital Formation||Directly promoted funds from savers to investors are directly channelised for productive purpose.||Indirectly promoted because the liquidity of securities is augmented.|
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Solution Differentiate Between 'Primary Market' and 'Secondary Market' on Any Five Basis Concept: Types of Financial Markets.