What is a primary and secondary sharemarket?

Question

just curious for both or either

:)

Answer 1

For Stocks the primary market is when the stock is first issued. At the initial public offering (IPO) the company who is offering their stock gets the money from those buying it. Investment Bankers/Brokers sell it to their clients.

After this initial sale, the stock trades on the exchange/market. This is the secondary market. People buy and sell it and the company that offered the stock doesn't get the money.