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प्रश्न
Distinguish between Primary Market and Secondary Market.
State any three points of difference between 'Primary Market' and 'Secondary Market'.
अंतर स्पष्ट करें
उत्तर
| S. No | Basis of Distinction | Primary Market | Secondary Market |
| 1. | Nature of Securities traded | New securities are issued by new and existing companies. | Existing securities are only purchased and sold. |
| 2. | Involvement of the company | A company sells securities to investors directly or through an intermediary. | Investors exchange ownership of securities. The company is not involved at all. |
| 3. | Capital formation | There is the flow of funds from savers to investors. It directly promotes capital formation. | The liquidity of securities is enhanced. It indirectly promotes capital formation. |
| 4. | Buying and selling | Only buying of securities takes place. | Both buying and selling of securities takes place. |
| 5. | Price determination | The company determines the price of securities to be issued. | Demand and supply of securities determine the price. |
| 6. | Location | There is no fixed, geographical location of the market. | The market is located at specified places. |
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Functions of Capital Market
क्या इस प्रश्न या उत्तर में कोई त्रुटि है?
संबंधित प्रश्न
A market is used for trading long-term securities. Identify the market and explain any four functions of the above.
In ______ only buying of securities takes place while in ______ both buying and selling of securities takes place.
Which of the following are the functions of capital market?
Explain any two functions of Capital Market.
