Question

Would you be purchasing financial securities in the primary market or in the secondary market? Explain your choice. (Avoid plagiarism 300 words.)

Answer 1

I would buy financial securities in the Secondary market.

why because

1. In the secoundary market , the security can be sold an infinite number of times, where as in the primary market it can be sold at once.

2. In the secondary market , the income recieved from the securities is the income of the investors,but in primary it is the income of the company.

3. The secondary market present physically like stock exchanges, which is situated in a perticular geographical area. where as primary market does not have a particular geographical area.

4. Buying is between investors in the secondary market, but in primary market buying is between companies and investors.

5. The price will fluctuates depending on demand and supply in secondary market, but in primary market , the price will be fixed price.

6.In the secondary market the securities will be liste in stock exganges, but in primary , the securities will be newly issued.

7.In secondary market brokers acts as intermediaries for trading securities. But in primary market investment bankers do securities trading.