ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -Primary market-original issuer can sell or repurchase a financial asset.

Detailed explanation-2: -The primary market refers to the market where securities are created and first issued, while the secondary market is one in which they are traded afterward among investors.

Detailed explanation-3: -The primary market is where securities are created, while the secondary market is where those securities are traded by investors. In the primary market, companies sell new stocks and bonds to the public for the first time, such as with an initial public offering (IPO).

Detailed explanation-4: -A primary market is defined as the market in which securities are created for first-time investors. On the other hand, the secondary market is defined as a place where the issued shares are traded among investors. 2. The company issues the shares, and the government interferes in the process.

Detailed explanation-5: -The term “primary market” only refers to those transactions where the issuing entity issues a security for the first time and sells to an investor. Future sales of the same securities are considered secondary market transactions.