Question

After doing a course in online trading Arsh started an online portal for stock trading
under the name Investment Guru. He met his school friend Ajay after a long time in a
bank where Ajay had come to open a D-mat account. Arsh urged Ajay to invest in the
forthcoming IPO of a blue chip companies whereas Ajay was indined to buy existing
securities of the other companies to build his investment portfolio In context of the
above case
Identify the two different types of capital market being referred to in the above
pan.
) State any two differences between the two different types of capital markets as
identified as in part (0)​

Answer 1

Answer:

- primary market

- secondary market

difference between primary market and capital market :

1. menaing

primary market is also called new issue market under which direct transaction between companies and investor takes place

secondary market is the market where transaction takes place between two existing investors of companies

parties involved :

primary market :-> seller - companies, buyer - investor

secondary market :-> seller - investor, buyer - investor