Which functions do primary and secondary markets perform in the financial system?

Expert Solution

The secutiry is listed first in the primary market (eg:IPO, rights issue) . It helps in fund raising primarily (funds that can be used by company for growing and sustaining).

The secondary market provides liquidity to the securities and helps in price discovery. The transaction results in funds getting transferred between the buyer and the seller. The company is not directly involved.

jeff jeffy answered 2 years ago

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Which functions do primary and secondary markets perform in the financial system?

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