The 2 Types Of Markets In Equity Market? Primary Market Vs. Secondary Market! Know All About The 2 Markets! (#6)

The 2 Types Of Markets!

We know that their are 2 types Of Markets In Stock Market:
Primary Market
Secondary Market

Difference Between The 2 Markets!

When ever a company issues it's shares for the first time (IPO) then who ever buys those shares, then they can say that they have bought it directly from the company. Hence, this is known as Primary Market. In other words, where ever a person buys a share in which the company itself is also involved; like if I bought a share from an IPO or when a company have issued new shares, which means I have bought the shares from the company itself than it is known as "Primary Market".

& whenever a company have sold all of it's shares (& maybe if there are not any more shares in the market issued by a company, yet) & if we want to buy the shares of that particular company than we'll buy it from a person who've bought it from somewhere else or the company itself. So where ever the stocks/shares are being exchanged among people & no company is itself involved in it, then it is known as Secondary market. In other words, whenever there is no other individual involved while exchanging securities, which means the share is bought by some other investor who might have bought it from someone else or maybe the company itself than it is known as "Secondary Market".

However while investing you won't find any for real difference among the two of these markets; just the time and value of the stocks/shares would have been increased or decreased depending upon certain factors!

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