| Basis | Primary Market | Secondary Market |
|---|---|---|
| Meaning | Issue of new securities for the first time | Trading of existing securities after issue |
| Also Called | New Issue Market (NIM) | Stock Market / After Issue Market |
| Purpose | To raise fresh capital for companies/government | To provide liquidity and price discovery |
| Instruments | Equity shares, preference shares, debentures, bonds, G-Secs | Equity shares, bonds, ETFs, derivatives already issued |
| Funds Flow | Investor → Company | Buyer → Seller (company not involved) |
| Pricing | Fixed price or book-building by issuer | Determined by market demand and supply |
| Participants | Issuers, investors, underwriters, regulators | Investors, brokers, traders, institutions |
| Regulation | SEBI regulates issue process and disclosures | SEBI and stock exchanges regulate trading & settlement |
| Liquidity | Limited until listing is completed | High – investors can buy/sell anytime |
| Example | IPO of Zomato on NSE | Trading Zomato shares on NSE after listing |
Primary vs. Secondary Market
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