Question

PRIMARY MARKET SECONDARY MARKET

Answer 1

S.R.	PRIMARY MARKET	SECONDARY MARKET
1.	Meaning The market is utilized for raising fresh capital in the form of shares and debentures.	It is a market where existing securities are resold or traded.
2.	Function The function is to raise long term funds through a fresh issue of securities.	The function is to provide a continuous and ready market for existing long term securities.
3.	Participants The participants are financial institutions, mutual funds, underwriters, individual investors.	The participants of the primary market, as well as the stockbrokers and the members of the stock exchange, are the participants.
4.	Listing Requirements Listing is not required in the case of the primary market.	Only listed securities can be dealt in the secondary market.
5.	Determinants of Prices The prices are determined by the management of the corporate houses with due compliances with the SEBI requirements for the new issue of securities.	In the case of the secondary market, the prices are determined by forces of demand and supply in the market and they keep on fluctuating.