Shares/Stock What are primary and Secondary Markets

A primary market is a market where new securities are first offered for sale to the public. A secondary market is a market where securities are bought and sold after they have been initially offered for sale in the primary market. The majority of trading in most securities takes place in the secondary market.

The most well-known primary market is the initial public offering (IPO) market, where a company sells new securities to the public for the first time. IPOs are typically offered by large, well-established companies that want to raise additional capital. However, small and medium-sized companies also occasionally go public through an IPO.

The secondary market is where most securities are traded after they are first offered in the primary market. The largest and most well-known secondary market is the stock market, where stocks and other securities are bought and sold on a daily basis. Other secondary markets include the bond market and the real estate market.
 
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