The primary market is the capital markets that deals with the issuance of new securities.
Primary market Issues can be classified into four types: Initial Public Offer, Follow on Offer, Rights Issue, Preferential Issue.
The investor does not have to pay any kind of brokerage or transaction fees or any tax such as service tax, stamp duty and STT.
The secondary market is the financial market for trading of securities that have already been issued in an initial private or public offering.
In the secondary market, securities are sold by and transferred from one investor or speculator to another.
Answered by
Seema
at
8:01 PM on March 08, 2008