What is the difference between a primary market and a secondary market? Provide examples of well-known...

60.1K

Verified Solution

Question

Finance

What is the difference between a primary market and a secondarymarket? Provide examples of well-known markets and categorize themappropriately. What are several examples of different types ofindices, and what do they measure?

Answer & Explanation Solved by verified expert

3.6 Ratings (379 Votes)

The Capital Market has two interdependent segments the new issues primary market and the stock secondary Market Primary Market The primary market provides the channel for sale of new securities while the secondary market deals in securities previously issued The issuer of securities sells the securities in the primary market to raise funds for investment andor to discharge some obligation In other words the market wherein resources are mobilised by companies through issue of new securities is called the primary market These resources are required for new projects as well as for existing projects with a view to expansion modernisation diversification and upgradation The Primary Market New Issues is of great significance to the economy of a country It is through the primary market that See Answer

Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:

Unlimited Question Access with detailed Answers
Zin AI - 3 Million Words
10 Dall-E 3 Images
20 Plot Generations
Conversation with Dialogue Memory
No Ads, Ever!
Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!

Become a Member