| | Primary market | Secondary market |
| Definition | A primary market is a marketplace where corporations imbibe a fresh issue of shares for being contributed by the public for soliciting capital to meet their necessary long-term funds like extending the current trade or buying a unique entity. | A secondary market is a prototype of the capital market where debentures, current shares, options, bonds, treasury bills, commercial papers, etc., of the enterprises are patronised amongst the investors. |
| Also called as | New Issue Market (NIM) | After Issue Market (AIM) |
| Role of the market | Market where stocks are issued for the first time | Market where stocks are traded once issued |
| Intermediaries | Investment banks | Brokers |
| Sale of securities | Directly by companies to investors | Sold and purchased amongst investors and traders |
| Price of shares | Fixed at par value | Changes depending on the supply and demand of shares |
| To whom it provides financing | It provides financing to the existing companies for facilitating growth and expansion. | It does not provide any kind of financing. |
