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What is Capital market? Define primary and secondary markets?

It is part of the financial markets where company generally go for rising funds from public or institutions for expansion. This can give a good platform for those who are seeking for fund and those who looking for investing.

There are two types of capital market. Primary market and secondary market. Both of them play important roles in thier own styles. Eg stock market and bonds market, etc. But primary market is less flexible than of secondary market.Primary market

Primary market

It is the platform where company issues its shares, bonds and debentures for the first time in public through IPO. Many retail investors are hard to allocate shares because there are minimum shares that need to be bought.

On the other hand, company has to find investors to acquire it’s minimum volume of shares within three days. Otherwise, primary market would be cancel.

Secondary market.

After the completion of primary market or IPO, company would be listed in stock exchange. Now, any investors, either retail or institutions can buy and sell shares at any working time. Minimum shares limit is no more here. Retail investors can invest with very very low amount and even a single share can be bought.

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