Finance markets | Business & Finance homework help
Primary markets are the first-hand markets in which traders buy and sell securities or other financial instruments. They involve direct transactions between buyers and sellers, often with a broker providing liquidity or facilitating the transaction. Examples of primary markets include stock exchanges, bond exchanges, commodity exchanges, and currency exchanges.
Secondary markets are the second hand markets where existing securities or financial instruments are bought and sold by investors. These markets exist to provide liquidity for previously traded securities and do not involve any interactions directly between buyers and sellers. Examples of secondary market activities include trading on stock exchanges, over-the-counter (OTC) trading, derivatives trading, and hedge funds investing.