How do primary and secondary financial markets differ?

Answer:
In the primary financial market money goes directly to the person or company who will be spending it, for example, if a person/company takes a loan out of the bank they will spend it on certain products in the market. In the secondary financial market, already existing financial assets are transferred from one saver to another. For example, if you don't want to be a part owner in a company anymore, you can sell your share as a secondary financial asset on the stock market. A transfer in the secondary market does not represent any new saving.
First answer by Kathory. Last edit by Kathory. Contributor trust: 7 [recommend contributor recommended]. Question popularity: 1 [recommend question].