Key Difference between Primary Market and Secondary Market
Primary markets are where stocks are created whereas secondary markets are where stocks are traded. When a company decides to go public for the first time by raising an IPO, it’s done in the primary markets. The company sells to the investors directly. After the shares are bought for the 1st time in the primary markets, they are then bought and sold amongst different traders/investors in the secondary markets. The issuing company is not involved in the share trading.
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