Question

Explain the difference between primary and secondary markets and why secondary markets are so important to...

Explain the difference between primary and secondary markets and why secondary markets are so important to businesses that need to raise capital? Give examples from the real world?

Please no picture, thank you

Homework Answers

Answer #1

when comapany issues stock for the first time it knock the doors of primary market. Initial public offer are made in primary market.

The stock are then traded in secondary market. Subsequent issue of share are made in secondary market.

Business that need to raise funds has to visit the secondary market. In secondary market stock is brought and sold between investor and other holder but not with company.

Example Infosys Ltd. ADR is sold at secondary market in US at around $ 17.30

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