| Points | Primary Market | Secondary Market |
| 1. Meaning | The market is utilized for raising fresh capital in the form of shares and debentures. | It is a market where existing securities are resold or traded. |
| 2. Function | The function is to raise long-term funds through fresh issues of securities. | The function is to provide a continuous and ready market for existing long-term securities. |
| 3. Participants | The participants are financial institutions, mutual funds, underwriters, individual investors. | The participants of the primary market are the stockbrokers and the members of the stock exchange. |
| 4. Listing Requirements | Listing is not required in the case of the primary market. | Only listed securities can be dealt with in the secondary market. |
| 5. Determinants of Prices | The prices are determined by the management of the corporate house with due compliances with the SEBI requirements for the new issues of securities. | In the case of the secondary market, the price is determined by forces of demand and supply of the market and it keeps on fluctuating. |
| 6. Issue of Prospectus | The prospectus is issued to invite the public to subscribe to the issue of shares. | The prospectus is not issued to the public. |
| 7. Relation with investors | Direct contact with the investors at large is established by the companies. | There may not be direct contact with the investors who want to buy or sell the existing securities. |
