When we learn about FINANCE then we compulsory need to learn about what is a FUNDAMENTALS OF MARKET.
❶ PRIMARY MARKET:
The main definition of PRIMARY MARKET is that the PRIMARY MARKET a transaction between only company and investors for example if you buy 10 shares of ABC company for rupees 1000 then the company gives you 10 shares but there no matter of stock exchanges in PRIMARY MARKET. BSE and NSE these two stock exchanges are absent in PRIMARY MARKET. The best example of PRIMARY MARKET is IPO when the company declared its IPO company issued its shares with investors, therefore, the transaction shares between the company and investors are called PRIMARY MARKET. In the PRIMARY MARKET, there is a transaction of shares between investors and the company.
❷ SECONDARY MARKET:
The main definition of the secondary market is that the secondary market is a transaction between investors and stock exchanges i.e BSE and NSE. The best example of a secondary market is IPO means before the declaration of IPO company is in the primary market but after the declaration of IPO company is listed in stock exchanges and also they are in a secondary market means the company doesn’t work in the secondary market where works are only investors and stock exchanges i.e BSE and NSE. The transaction of shares in the secondary market is between investors and stock exchanges. When investors buy shares of a particular company they buy through stock exchanges means where stock exchanges are work a mediator between investors and company.
THESE ARE ALL ABOUT FUNDAMENTALS OF MARKET NEXT BLOG POST WE LEARN ABOUT CAPITAL MARKET AND MONEY MARKET!!