Question 31 of 32
Q.Distinguish between the following:
Primary market and Secondary market
Maharashtra MsbshseMaharashtra HSC (MSBSHSE) Board 2020Subjective· 4mImportance★★★★★
97% · 31/32 Questions
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Start your 14-day free trial to unlock the full solution →Primary market = fresh issue of new securities by the company; secondary market = trading of existing securities among investors.
| Point | Primary Market | Secondary Market |
|---|---|---|
| Meaning | Market for new (fresh) issue of securities | Market for buying and selling existing securities |
| Securities dealt in | New securities issued for the first time | Second-hand, already-issued securities |
| Parties | Between the company and the investors | Between one investor and another |
| Flow of funds | Funds go directly to the company | Funds move between investors; company gets nothing |
| Also known as | New Issue Market (NIM) | Stock market / stock exchange |
| Price | Price is generally fixed (issue price) | Price varies with demand and supply |
| … |
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