capital_market012

May 19th, 2015
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It is that market in which shares, debentures and other securities are sold for the first time for collecting long-term capital. This market is concerned with new issues. Therefore, the primary market is also called NEW ISSUE MARKET.

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Primary MarketIt is that market in which shares,debentures and other securities aresold for the first time for collectinglong-term capital.This market is concerned with newissues. Therefore, the primary marketis also called NEW ISSUE MARKET. Inthis market, the flow of fundsis from savers to borrowers(industries), hence, it helpsdirectly in the capital formationof the country. The money collected from thismarket is generally used by thecompanies to modernize theplant, machinery and buildings,for extending business, and forsetting up new business unit.Features of PrimaryMarketIt Is Related With New IssuesIt Has No Particular PlaceIt Has Various Methods Of Float Capital:Following are the methods of raisingcapital in the primary market:i) Public Issueii) Offer For Saleiii) Private Placementiv) Right Issuev) Electronic-Initial PublicOfferIt comes before Secondary MarketSecondary Market The secondary market isthat market in which thebuying and selling of thepreviously issued securities isdone. The transactions of thesecondary market aregenerally done through themedium of stock exchange.If an individual hasbought some security andhe now wants to sell it, hecan .do so through themedium of stock exchangeto sell or purchase throughthe medium of stockexchange requires theservices of the brokerFeatures of SecondaryMarketItItItItCreates LiquidityComes Afte

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