{"id":9115,"date":"2021-10-20T18:52:28","date_gmt":"2021-10-20T13:22:28","guid":{"rendered":"https:\/\/scholarsclasses.com\/blog\/?p=9115"},"modified":"2025-10-09T15:30:57","modified_gmt":"2025-10-09T10:00:57","slug":"difference-between-primary-and-secondary-market","status":"publish","type":"post","link":"https:\/\/scholarsclasses.com\/blog\/difference-between-primary-and-secondary-market\/","title":{"rendered":"Difference Between Primary and Secondary Market (5 Points) | Important Article"},"content":{"rendered":"\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_81 counter-hierarchy ez-toc-counter ez-toc-grey ez-toc-container-direction\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<label for=\"ez-toc-cssicon-toggle-item-69d5f08f79972\" class=\"ez-toc-cssicon-toggle-label\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-69d5f08f79972\"  aria-label=\"Toggle\" \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/scholarsclasses.com\/blog\/difference-between-primary-and-secondary-market\/#Difference_Between_Primary_and_Secondary_Market\" >Difference Between Primary and Secondary Market<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/scholarsclasses.com\/blog\/difference-between-primary-and-secondary-market\/#Meaning_of_Primary_Market\" >Meaning of Primary Market<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/scholarsclasses.com\/blog\/difference-between-primary-and-secondary-market\/#Meaning_of_Secondary_Market\" >Meaning of Secondary Market<\/a><ul class='ez-toc-list-level-4' ><li class='ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/scholarsclasses.com\/blog\/difference-between-primary-and-secondary-market\/#Difference_Between_Primary_and_Secondary_Market-2\" >Difference Between Primary and Secondary Market<\/a><\/li><\/ul><\/li><\/ul><\/li><\/ul><\/nav><\/div>\n<h2 class=\"wp-block-heading has-text-align-center has-black-color has-text-color\"><span class=\"ez-toc-section\" id=\"Difference_Between_Primary_and_Secondary_Market\"><\/span><strong>Difference Between Primary and Secondary Market<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<figure class=\"wp-block-image size-large\"><img decoding=\"async\" width=\"1024\" height=\"576\" data-src=\"https:\/\/scholarsclasses.com\/blog\/wp-content\/uploads\/2021\/10\/Difference-Between-Primary-and-Secondary-Market-1024x576.jpg\" alt=\"Difference Between Primary and Secondary Market\" class=\"wp-image-9128 lazyload\" title=\"\" data-srcset=\"https:\/\/scholarsclasses.com\/blog\/wp-content\/uploads\/2021\/10\/Difference-Between-Primary-and-Secondary-Market-1024x576.jpg 1024w, https:\/\/scholarsclasses.com\/blog\/wp-content\/uploads\/2021\/10\/Difference-Between-Primary-and-Secondary-Market-300x169.jpg 300w, https:\/\/scholarsclasses.com\/blog\/wp-content\/uploads\/2021\/10\/Difference-Between-Primary-and-Secondary-Market-768x432.jpg 768w, https:\/\/scholarsclasses.com\/blog\/wp-content\/uploads\/2021\/10\/Difference-Between-Primary-and-Secondary-Market-1536x864.jpg 1536w, https:\/\/scholarsclasses.com\/blog\/wp-content\/uploads\/2021\/10\/Difference-Between-Primary-and-Secondary-Market-640x360.jpg 640w, https:\/\/scholarsclasses.com\/blog\/wp-content\/uploads\/2021\/10\/Difference-Between-Primary-and-Secondary-Market.jpg 1920w\" data-sizes=\"(max-width: 1024px) 100vw, 1024px\" src=\"data:image\/svg+xml;base64,PHN2ZyB3aWR0aD0iMSIgaGVpZ2h0PSIxIiB4bWxucz0iaHR0cDovL3d3dy53My5vcmcvMjAwMC9zdmciPjwvc3ZnPg==\" style=\"--smush-placeholder-width: 1024px; --smush-placeholder-aspect-ratio: 1024\/576;\" \/><figcaption class=\"wp-element-caption\">Difference Between Primary and Secondary Market<\/figcaption><\/figure>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Meaning_of_Primary_Market\"><\/span><strong>Meaning of Primary Market<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p><strong>In Primary market, companies sell their shares, Debentures, etc. for the first time to raise fresh capital. It exclusively deals with the issue of new securities, i.e. securities that are issued to investors for the very first time. Hence this market is also known as New Issues Market.<\/strong><\/p>\n\n\n\n<p>The main function of the primary market is to facilitate capital formation. It is a place where investors can invest their surplus funds profitably and companies can raise capital easily. On the basis of type of funds raised, Primary market can be classified as Equity market and Debt market. In Equity market, securities like Equity shares, Preference Shares, Rights Issue, etc. are issued. In Debt market, debentures, bonds, fixed deposits, etc. are issued.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Meaning_of_Secondary_Market\"><\/span><strong>Meaning of Secondary Market<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p><strong>The secondary market is more commonly known as the stock market or the stock exchange. Here the previously issued securities are bought and sold by the investors<\/strong>. After IPO, when the shares are listed at the Stock Exchange, they can be traded in the secondary market. In this market, the securities are traded between investors.<\/p>\n\n\n\n<p>The main difference between the primary and the secondary market is that in the primary market only new securities are issued, whereas in the secondary market the already existing securities are traded. There is no fresh issue in the secondary market.<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><a href=\"https:\/\/scholarsclasses.com\/blog\/difference-between-fixed-capital-and-working-capital\/\" data-type=\"URL\" data-id=\"https:\/\/scholarsclasses.com\/blog\/difference-between-fixed-capital-and-working-capital\/\" target=\"_blank\" rel=\"noreferrer noopener\">Difference Between Fixed Capital and Working Capital<\/a><\/li>\n\n\n\n<li><a href=\"https:\/\/scholarsclasses.com\/blog\/difference-between-owned-capital-and-borrowed-capital\/\" data-type=\"URL\" data-id=\"https:\/\/scholarsclasses.com\/blog\/difference-between-owned-capital-and-borrowed-capital\/\" target=\"_blank\" rel=\"noreferrer noopener\">Difference Between Owned Capital and Borrowed Capital<\/a><\/li>\n\n\n\n<li><a href=\"https:\/\/scholarsclasses.com\/blog\/difference-between-debenture-and-share\/\" target=\"_blank\" rel=\"noreferrer noopener\">Difference Between Debenture and Share<\/a><\/li>\n\n\n\n<li><a href=\"https:\/\/scholarsclasses.com\/blog\/difference-between-preference-shares-and-equity-shares\/\" data-type=\"URL\" data-id=\"https:\/\/scholarsclasses.com\/blog\/difference-between-preference-shares-and-equity-shares\/\" target=\"_blank\" rel=\"noreferrer noopener\">Difference Between Preference Shares and Equity Shares<\/a><\/li>\n<\/ul>\n\n\n\n<h4 class=\"wp-block-heading has-text-align-center\"><span class=\"ez-toc-section\" id=\"Difference_Between_Primary_and_Secondary_Market-2\"><\/span><strong><strong><strong><strong><a href=\"https:\/\/www.sebi.gov.in\/sebi_data\/faqfiles\/jan-2017\/1485843476566.pdf\" target=\"_blank\" data-type=\"URL\" data-id=\"https:\/\/www.sebi.gov.in\/sebi_data\/faqfiles\/jan-2017\/1485843476566.pdf\" rel=\"noreferrer noopener\">Difference Between Primary and Secondary Market<\/a><\/strong><\/strong><\/strong><\/strong><span class=\"ez-toc-section-end\"><\/span><\/h4>\n\n\n\n<figure class=\"wp-block-table\"><table class=\"has-fixed-layout\"><tbody><tr><td class=\"has-text-align-center\" data-align=\"center\"><strong>Points<\/strong><\/td><td class=\"has-text-align-center\" data-align=\"center\"><strong><strong><strong><strong>Primary Market<\/strong><\/strong><\/strong><\/strong><\/td><td class=\"has-text-align-center\" data-align=\"center\"><strong><strong><strong><strong>Secondary Market<\/strong><\/strong><\/strong><\/strong><\/td><\/tr><tr><td class=\"has-text-align-center\" data-align=\"center\">1) Meaning<\/td><td class=\"has-text-align-center\" data-align=\"center\">The issue of new shares by the<br>company is done in the primary<br>market.<\/td><td class=\"has-text-align-center\" data-align=\"center\">The securities issued earlier are<br>traded in the secondary market.<\/td><\/tr><tr><td class=\"has-text-align-center\" data-align=\"center\">2) Mode of Investment<\/td><td class=\"has-text-align-center\" data-align=\"center\">Direct investment in the securities.<br>Securities are acquired directly from the company.<\/td><td class=\"has-text-align-center\" data-align=\"center\">Indirect investment as the securities are acquired from other stakeholders.<\/td><\/tr><tr><td class=\"has-text-align-center\" data-align=\"center\">3) Parties in action<\/td><td class=\"has-text-align-center\" data-align=\"center\">The parties dealing in this market<br>are company and investors.<\/td><td class=\"has-text-align-center\" data-align=\"center\">The parties dealing in this market<br>are only investors.<\/td><\/tr><tr><td class=\"has-text-align-center\" data-align=\"center\">4) Intermediary<\/td><td class=\"has-text-align-center\" data-align=\"center\">The underwriters are the<br>intermediaries.<\/td><td class=\"has-text-align-center\" data-align=\"center\">The security brokers are the<br>intermediaries.<\/td><\/tr><tr><td class=\"has-text-align-center\" data-align=\"center\">5) Value of security<\/td><td class=\"has-text-align-center\" data-align=\"center\">The price of security in the primary market is fixed as it is decided by the company.<\/td><td class=\"has-text-align-center\" data-align=\"center\">The price of security is fluctuating,<br>depending on the demand and supply conditions in the market.<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n<ul class=\"wp-block-list\">\n<li><a href=\"https:\/\/scholarsclasses.com\/blog\/difference-between-dematerialisation-and-rematerialisation\/\" data-type=\"URL\" data-id=\"https:\/\/scholarsclasses.com\/blog\/difference-between-dematerialisation-and-rematerialisation\/\" target=\"_blank\" rel=\"noreferrer noopener\">Difference between Dematerialisation and Rematerialisation<\/a><\/li>\n\n\n\n<li><a href=\"https:\/\/scholarsclasses.com\/blog\/difference-between-final-dividend-and-interim-dividend\/\" data-type=\"URL\" data-id=\"https:\/\/scholarsclasses.com\/blog\/difference-between-final-dividend-and-interim-dividend\/\" target=\"_blank\" rel=\"noreferrer noopener\">Difference Between Final Dividend and Interim Dividend<\/a><\/li>\n\n\n\n<li><a href=\"https:\/\/scholarsclasses.com\/blog\/difference-between-dividend-and-interest\/\" target=\"_blank\" rel=\"noreferrer noopener\">Difference Between Dividend and Interest<\/a><\/li>\n\n\n\n<li><a href=\"https:\/\/scholarsclasses.com\/blog\/difference-between-primary-and-secondary-market\/\" target=\"_blank\" rel=\"noreferrer noopener\">Difference Between Primary and Secondary Market<\/a><\/li>\n<\/ul>\n\n\n\n<p><strong>Learn the chapters on TYBCOM from our <a href=\"https:\/\/studio.youtube.com\/channel\/UCExY0hxogv75WdPK1MFS3fw\" data-type=\"link\" data-id=\"https:\/\/studio.youtube.com\/channel\/UCExY0hxogv75WdPK1MFS3fw\" target=\"_blank\" rel=\"noopener\">YouTube channel<\/a>.<\/strong><\/p>\n","protected":false},"excerpt":{"rendered":"<p>&#46;&#46;&#46;<\/p>\n","protected":false},"author":1,"featured_media":9128,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[10],"tags":[3374],"class_list":["post-9115","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-educational-blogs","tag-difference-between-primary-market-and-secondary-market"],"_links":{"self":[{"href":"https:\/\/scholarsclasses.com\/blog\/wp-json\/wp\/v2\/posts\/9115","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/scholarsclasses.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/scholarsclasses.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/scholarsclasses.com\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/scholarsclasses.com\/blog\/wp-json\/wp\/v2\/comments?post=9115"}],"version-history":[{"count":5,"href":"https:\/\/scholarsclasses.com\/blog\/wp-json\/wp\/v2\/posts\/9115\/revisions"}],"predecessor-version":[{"id":39667,"href":"https:\/\/scholarsclasses.com\/blog\/wp-json\/wp\/v2\/posts\/9115\/revisions\/39667"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/scholarsclasses.com\/blog\/wp-json\/wp\/v2\/media\/9128"}],"wp:attachment":[{"href":"https:\/\/scholarsclasses.com\/blog\/wp-json\/wp\/v2\/media?parent=9115"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/scholarsclasses.com\/blog\/wp-json\/wp\/v2\/categories?post=9115"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/scholarsclasses.com\/blog\/wp-json\/wp\/v2\/tags?post=9115"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}