What is the difference between primary and secondary markets Primary markets help in capital formati...........

Finance Financial Markets

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What is the difference between primary and secondary markets?

Primary markets help in capital formation, while secondary capital provides liquidity to the investor
Initial public offerings are undertaken in both primary and secondary markets
Stock exchanges are an example of secondary markets

Select the correct answer using the codes given below:

3 only

2 and 3 only

1 and 3 only

1, 2 and 3

Explanation:

The primary market is where securities are created, while the secondary market is where those securities are traded by investors. Only In the primary market, companies sell new stocks and bonds to the public for the first time, such as with an initial public offering (IPO)