What are Primary and Secondary Markets?
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To acquire shares of a company there are mainly two mediums available to the investors – One is Primary Market and another is Secondary Markets. Let’s learn more about them:
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Types of Markets
The two types of markets are:
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Primary Markets
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Secondary Markets
Primary Markets: This is an initial market for the shares where they are sold for the first time, In this market shares are bought by the way of public issue directly from the company.
Secondary Markets: In this market the investor buys shares from other investors in the stock exchange, in this market the shares are traded between the investors at the market prices.
I hope the initial point is clear to you regarding Primary and Secondary Markets, we will discuss about them more in our future lessons.
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Hi, I’m Managing Director at Gurpreet Saluja Financial Services where I help my investors to invest in mutual funds and achieve their financial goals. I’m also a Value Investor and here I write about Personal Finance & Investing.
