What is difference between primary markets and secondary markets

Question

Accepted Answer

Primary markets are where new securities are issued for the first time, while secondary markets are where existing securities are bought and sold.

Primary markets involve the issuance of new securities by companies or governments to raise capital.
Secondary markets involve the buying and selling of existing securities among investors.
Primary markets provide capital to companies, while secondary markets provide liquidity to investors.
Examples of primary markets include initial public offerings (IPOs) and bond issuances, while examples of secondary markets include stock exchanges like NYSE and NASDAQ.

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