This market is divided into two categories:
Primary Market
-
-
- It is also known as new issue market; as in this market securities are sold for the first timee. new securities are issued from the company
- The common securities issued in primary market are equity shares, debentures, bonds, preference shares and other innovative securities
-
Secondary Market (Stock Exchange)
-
-
- The secondary market is the market for the sale and purchase of previously issued or second hand securities
- Here, securities are not directly issued by the company to investors; instead the securities are sold by existing investors to other investors
-
