The market in which securities are issued, purchased by investors, and subsequently transferred among investors is called the securities market. The securities market has two INTERDEPENDENT and INSEPARABLE segments, VIZ., the primary market and secondary market. The primary market, also called the new issue market, is where issuers raise capital by issuing securities to investors.

The secondary market also called the stock exchange FACILITATES trade in already-issued securities, thereby enabling investors to exit from an investment. The risk in a security investment is transferred from one investor (seller) to another (buyer) in the secondary MARKETS. The primary market creates financial assets, and the secondary market makes them marketable.

The market in which securities are issued, purchased by investors, and subsequently transferred among investors is called the securities market. The securities market has two interdependent and inseparable segments, viz., the primary market and secondary market. The primary market, also called the new issue market, is where issuers raise capital by issuing securities to investors.

The secondary market also called the stock exchange facilitates trade in already-issued securities, thereby enabling investors to exit from an investment. The risk in a security investment is transferred from one investor (seller) to another (buyer) in the secondary markets. The primary market creates financial assets, and the secondary market makes them marketable.