Answers ( 1 )

  1. A primary share market is a place where a company first registers and issues a certain amount of shares with the goal of raising funds.  The goal of being publicly listed on a primary stock exchange is to raise funds.  This is where a company gets registered to issue a certain amount of shares and raise funds.  If the company decides to sell its shares for the first time, it is known as Initial Public Offering. 

    Secondary Share Market Once the company's new securities are sold in the primary market, they are traded in the secondary stock market.  In the secondary share market, investors get an opportunity to exit their investments and sell their shares.  Transactions on the secondary share market mostly involve trades where an investor chooses to buy shares from a different investor at the current market price.  Based on whatever price both parties agree to set or the prevailing market price, one investor will buy shares from the other in the secondary market.  Investors usually do these transactions through a broker or other such intermediary who can facilitate the process.  Brokers provide these trading opportunities in different plans.

    0 Comment Add Comment/ View

Leave an answer

Logged in as