EBK FINANCIAL MARKETS AND INSTITUTIONS
EBK FINANCIAL MARKETS AND INSTITUTIONS
6th Edition
ISBN: 8220102801028
Author: SAUNDERS
Publisher: YUZU
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Chapter 1, Problem 1DYU
Summary Introduction

To determine: The difference between primary and secondary market.

Expert Solution & Answer
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Explanation of Solution

BasisPrimary marketSecondary market
MeaningPrimary market is the market place for new shares.Secondary market is a place for trading existing securities.
Other nameNew issue marketAfter market
Purchasing typeDirect purchaseIndirect purchase
Number of times securities can be soldOne timeNumerous times
IntermediariesIntermediaries are underwritersIntermediaries are brokers.
PriceConstant priceVarying price based on the demand and supply.

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