What is meant by a primary and a secondary market?

Answer:

Answer

The primary market is the market in which a security is originated, or first sold after issue. The proceeds of the sale go to the issuer. The secondary market is the subsequent market in which the security continues to trade, as it is passed from one investor to another.


The primary market and the secondary market both constitute the capital market.
First answer by Hmarcks. Last edit by Investor101. Contributor trust: 5 [recommend contributor recommended]. Question popularity: 58 [recommend question].