It is the place where securities are offered to the public for the first time which means that the IPO is issued and opens for a subscription for the first time in the market. It is also called an initial market. The issuer company thus gets the capital required to carry on investments.
Once the capital is raised by the company, IPO shares get listed on the stock exchange and are ready to be traded in the market. This is known as the secondary market. Stock Exchanges NSE and BSE are part of the secondary market.
|Primary Market||Secondary Market|
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