📈What is the Primary Market in the Stock Market
- It’s where the companies sell their newly issued shares directly to the public through IPOs (Initial Public Offerings).
- The money raised helps the company grow and expand its business.
- It helps them to fund new projects or pay off debts.
- The company decides the price of the shares, often with guidance from experts called investment banks.
- After the shares are sold, they move to the secondary market for trading.
📈What is the Secondary Market in the Stock Market?
- It’s where the shares are bought and sold after the IPO and the primary market.
- Here, you’re not buying shares directly from the company at the initial price, but buying them from the people at their selling price.
- Stock exchanges like the NSE and BSE are the key platforms for trading in the secondary market.
- It allows investors to trade shares freely, providing liquidity and flexibility to both buyers and sellers.
- In the secondary market, the price of a share is determined by factors such as supply and demand, technicals, emotions, news, etc.