As a new investor in the stock market Vinod wants to understand the Primary & Secondary Markets.
His friend Asish – an active trader with Angel Broking, explained:
The primary market is where the stocks are created & secondary market is where stocks are traded.
When a company decides to go public for the first time by raising an IPO, it is done in the primary market. Here a company sells its shares directly to the investors.
After the shares are bought for the first time in the primary market, traders buy and sell these shares among themselves in the secondary market.
In the secondary market, the issuing company is not involved directly in any transaction.
So, in the primary market Vinod will buy shares directly from a company while in the secondary market, Vinod will buy or sell shares to another trader.
With a better understanding of share market investment, Vinod is now, ready to trade with Angel Broking as his trusted partner.
If you are ready to trade, Let us help you in Opening a Demat Account.