Primary Market & Secondary Share Market

For a beginner in share market , some basic queries always evolve into the mind , the first of them is, what is place where shares are actually distributed by the company itself and where it is available for trading therefore.

Primary Market..The Stock Creator

When an organization launches its shares at first hand , it does it by issuing IPOs , and these IPOs are directly available in Primary market.The company directly sells its shares to its investors and raises fund for development of the company itself.

 

Secodary Market..The Player

After company sells its IPOs to investors directly,  its direct relation to these shares are ceased. Shares,which are bought at first hand from primary market , are then brought into Secondary market for sole purpose of trading, in this market these shares are bought and sold multiple times between various traders/investors.

 

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