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Resource Mobilization — Entrepreneurship STD 12 Commerce — Question

CBSE BoardEnglish MediumSTD 12 CommerceEntrepreneurshipResource Mobilization4 Marks
Question
Differentiate between primary market and secondary market.
✓

Answer

Differences between primary market and secondary market are:
S. No.
Basis
Primary market
Secondary market
1.
Meaning
Primary market deals with the trading of newly issued securities.
Secondary market is that part of capital market which deals in already issued securities.
2.
Role of the issuing company
Issuing company plays an active role as shares are sold directly to the investors.
The company has no role to play as securities are traded between investors only.
3.
Determination of Price
Price is determined by the company.
Price is determined by the market forces of demand and supply.
 

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