ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -In the primary market, new stocks and bonds are sold to the public for the first time. In a primary market, investors are able to purchase securities directly from the issuer. Types of primary market issues include an initial public offering (IPO), a private placement, a rights issue, and a preferred allotment.

Detailed explanation-2: -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-3: -Primary market is the market for new shares or securities. A primary market is one in which a company issues new securities in exchange for cash from an investor (buyer). It deals with trade of new issues of stocks and other securities sold to the investors.

Detailed explanation-4: -In the primary market, securities are directly issued by companies to investors. Securities are issued either by an Initial Public Offer (IPO) or a Further Public Offer (FPO). An IPO is the process through which a company offers equity to investors and becomes a publicly-traded company.

Detailed explanation-5: -The secondary market is where investors buy and sell securities they already own. It is what most people typically think of as the “stock market, ” though stocks are also sold on the primary market when they are first issued.