Primary Markets: The initial
market that securities come from is called the “primary market.”
In order for a
stock to be considered in the primary market, the company or other entity must
distribute it themselves.
The primary market is also unique that the initial
buyer is the only person who can exchange the securities for funds.
So,
basically, primary markets are not “exchanges” like you will see on Wall Street
or BSE.
Secondary Markets: When you
hear about the BSE or New York Stock Exchange or other exchanges you are talking
about secondary markets.
These markets are used for trading stocks between
persons and other entities that may purchase them. Needless to say, people
involved in the secondary market usually are the ones who buy the securities in
the primary markets anyway.
Rising and falling stocks allow for investors to
accumulate more money.
In this process, it assists the companies which
originally sold the securities in receiving some sort of profit that they can
put back into the company or create more securities.
Honourable mentions go to:
F.Y.B.Com.: Zenaida, Alisha
S.Y.B.Com.: Stella, Olivia
Somebody try to crack this oligopoly please :) :) :) :)
