ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -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-2: -The term capital market refers to any part of the financial system that raises capital from bonds, shares, and other investments. New stocks and bonds are created and sold to investors in the primary capital market, while investors trade securities on the secondary capital market.

Detailed explanation-3: -Capital markets are those market where trading of assets such as bonds, equity and securities take place. Capital markets deal with financial instruments that are having a lock-in period of more than one year. There are two types of capital markets, namely: Primary market.

Detailed explanation-4: -The primary and secondary markets in India function as they do anywhere: In the primary market, the investor purchases shares or bonds directly from a company in a one-time transaction; in the Secondary Market, investors buy and sell the stocks and bonds among themselves, and can do so an infinite number of times.

Detailed explanation-5: -Primary Market. Primary market is the market for new shares or securities. Secondary Market. Secondary market deals with the exchange of prevailing or previously-issued securities among investors.