Primary and Secondary Market

Primary Market is the market for new issues.

When a company offers to sell its shares to the public for the very first time, it is referred to as an Initial Public Offering. The shares available here are referred to as the Primary Market.

Once the company comes out with an IPO, the shares will now be available for trading on the stock exchange where it is listed. This is now referred to as the Secondary Market.

Hence, the company's stock is first issued to the public in the Primary Market. It is then traded (bought and sold) in the Secondary Market.