Q » What is the difference between primary market and secondary market?

Christopher

01 Nov, 2025

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A » The primary market is where new securities are issued and sold directly by the issuer to investors, often through initial public offerings (IPOs). In contrast, the secondary market is where existing securities are traded among investors without the involvement of the issuing companies, providing liquidity and the opportunity for price discovery. Both markets play crucial roles in the financial ecosystem, facilitating capital raising and investment opportunities.

Michael

01 Nov, 2025

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A »The primary market is where new securities are issued, allowing companies to raise capital. For example, an IPO is a primary market transaction. The secondary market is where existing securities are traded among investors, providing liquidity. For instance, buying shares of a publicly traded company on a stock exchange is a secondary market transaction.

Ronald

01 Nov, 2025

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A »The primary market is where new securities are issued and sold directly by companies to investors, often through initial public offerings (IPOs). In contrast, the secondary market is where investors buy and sell these securities among themselves after the initial issuance, providing liquidity and ongoing price discovery. Essentially, the primary market raises new capital, while the secondary market facilitates trading of existing securities.

Edward

01 Nov, 2025

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A »The primary market is where securities are issued and sold to investors for the first time, raising capital for the issuer. The secondary market, on the other hand, is where existing securities are traded among investors, providing liquidity and determining market prices. The primary market facilitates capital formation, while the secondary market enables price discovery and risk management.

Steven

01 Nov, 2025

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A »The primary market is where new securities are issued directly by companies to investors, such as during an IPO. The secondary market involves trading existing securities among investors, like on stock exchanges. For example, when a company goes public, it sells shares in the primary market; once listed, those shares are traded among investors in the secondary market, such as buying Google shares on NASDAQ.

Charles

01 Nov, 2025

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A »The primary market is where new securities are issued and sold to investors for the first time, raising capital for the issuer. The secondary market is where existing securities are traded among investors, providing liquidity and price discovery. The primary market facilitates capital formation, while the secondary market enables investors to buy and sell securities.

Anthony

01 Nov, 2025

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A »The primary market is where new securities are issued and sold directly by the issuer to investors, usually through an initial public offering (IPO). The secondary market, on the other hand, is where existing securities are traded among investors after the original issuance. This market provides liquidity and enables price discovery by allowing investors to buy and sell securities without impacting the issuer directly.

Matthew

01 Nov, 2025

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A »The primary market is where new securities are issued, and companies raise capital. For example, an IPO is a primary market transaction. In contrast, the secondary market is where existing securities are traded among investors, providing liquidity. For instance, buying shares of a publicly traded company on a stock exchange is a secondary market transaction.

Daniel

01 Nov, 2025

0 | 0

A »The primary market is where new securities are issued and sold directly by the company to investors, often through an Initial Public Offering (IPO). In contrast, the secondary market is where existing securities are traded among investors without the involvement of the issuing company, such as on stock exchanges. This allows for liquidity and price determination for the securities.

Joseph

01 Nov, 2025

0 | 0

A »The primary market is where securities are issued and sold to investors for the first time, such as during an initial public offering (IPO). The secondary market is where existing securities are traded among investors, providing liquidity and price discovery. The primary market raises capital for issuers, while the secondary market facilitates buying and selling between investors.

William

01 Nov, 2025

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A »The primary market is where new securities are issued directly to investors by the company, such as during an Initial Public Offering (IPO). In contrast, the secondary market is where existing securities are traded among investors, like on the stock exchange. For example, buying shares from a company during their IPO occurs in the primary market, while buying shares through the stock exchange afterward happens in the secondary market.

James

01 Nov, 2025

0 | 0