After doing a course in online trading, Bharat started an online portal for stock trading under the name "Bharat Trading". He met his school friend Bhavesh after a long time in a bank where Bhavesh had come to open a Dem

CS Professional · Capital Commodity and Money Market · PYQS · December 2020
After doing a course in online trading, Bharat started an online portal for stock trading under the name "Bharat Trading". He met his school friend Bhavesh after a long time in a bank where Bhavesh had come to open a Demat account. Bharat urged Bhavesh to invest in the forthcoming IPOs of blue chip companies whereas Bhavesh was inclined to buy existing securities of the other companies to build his investment portfolio. In the context of the above case: State any four differences between the two different types of capital market.

Answer & Explanation:

Answer 3(b) Any four differences between the two different types of capital market i.e. primary and secondary markets are as under: S.No. Basis Primary Market Secondary Market 1 Meaning It is the market for new issue of securities It is the market for old securities 2 Aspects Only buying of securities takes place Both buying and selling of securities takes place 3 Parties involved It involved dealing between the company and investors It involves dealing between the two investors 4 Price Prices of the securities are determined by the company Prices of the securities are determined by the forces of the demand and supply

Topics: Capital Market

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