Frequently Asked Questions

faq-img
searchclose

Bond Terminologies

What are the Primary Market and Secondary Market?


The Capital market, where companies or governments directly issue securities (debt-based or equity-based) to raise funds, is called Primary Market. In the primary market, the issuer sells securities at predetermined prices. The buyers in the market can be financial institutions, corporates, mutual funds, and individuals.

The secondary market is the capital market, where securities are traded among investors. Trading can happen between Financial institutions, individual investors, or both. The issuer doesn't participate in trading. The price of the securities in the Secondary Market is dependent on current demand and supply.

To know about other Bond terminologies, visit Bond Glossary.