Question
Write four points of difference between Primary Market and Secondary Market.

Answer

No. Points Primary Market Secondary Market
$1.$ Objective Main objective of primary market is to divert fund to the party which requires fund from those who have idle saving with them. Main objective of secondary market is to provide liquidity to issued securities and thereby make it more attractive.
$2.$ Participants Participants in primary market are investors, security issues, and various intermediates. Participants is secondary market are stock exchanges, brokers and investors.
$3.$ Attraction Till today compared to equity instruments, debt instruments are more attractive. In secondary market investors are more attracted towards equity
$4.$ Scope Scope of primary market is much narrow than secondary market. Scope of secondary market is wider.
$5.$ Priority Primary market holds more priority than secondary market. SEBI regulates secondary market in India.
$6.$ Regulatory RBI regulates finance market in primary market are SEBI regulates capital market In secondary market securities traded are first issued in primary market.

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