What is the difference between a primary market and a secondary market?

Question

Accepted Answer

A primary market is where new securities are issued and sold for the first time, while a secondary market is where previously-issued securities are traded among investors.. The primary market often involves initial public offerings (IPOs), which can significantly influence a company's visibility and valuation, exemplified by the Facebook IPO in 2012.

Investor relations interview questions Quiz

Q1. What is the difference between a primary market and a secondary market?

Answers

A1. A primary market is where new securities are issued and sold for the first time, while a secondary market is where previously-issued securities are traded among investors.