| Points of difference | Primary market | Secondary market |
| 1. Meaning | When a company publicly sells new stocks or securities and bonds for the first time in the market, the market is called the primary capital market. | The secondary market is the market in which securities such as shares (stock), bonds, etc. which were originally issued in the primary market can be purchased and sold (traded/exchanged). |
| 2. Objective | To raise fund for the corporates by motivating investors to invest their idle money in the market | To enable investors turn their savings into investments through trade of securities issued in the primary market |
| 3. Scope | The scope of this market is quite narrow because it deals with issuing only new securities. | The scope of this market is quite wide because itdeals with trading all those securities issued in the primary market. |
| 4. Type of purchasing | Direct | Indirect |
| 5. Participants of trade | Company and investors | Investors among themselves |
| 6. Entity that earns out of sale of shares | Companies who sells the shares | Investors who sell the shares in the market (to other investors). |
