What is the primary market and the secondary market?

Mondo Finance Updated on 2024-02-26

According to whether the financial mall is the initial issuance of the trading house, it is divided into a first-class shopping mall and a second-class shopping mall, including **, bonds, **, etc.

The first-class shopping mall is the first issuing mall, also known as the issuance mall, the primary mall, which is the buying and selling between the capital demander (enterprise, etc.) and the investorIt is a shopping mall for buying and selling financial instruments such as new ** and bills. For example, the issuance of a first-class shopping mall is fixed, and it cannot be bought and sold publicly in a first-class shopping mall, and can only participate in the issuance of a shopping mall. Venture capital, or private equity, can be funded through first-tier shopping malls.

Secondary shopping malls are shopping malls that are bought and sold, also known as circulation shopping malls, secondary shopping malls, and trading malls, which are the transfer and sale of issued valuable goods between investors. For example, it can be circulated at will in secondary shopping malls, but it will change at any time due to the supply and demand relationship of shopping malls.

The primary shopping mall is non-public and has a certain degree of opacity, while the secondary shopping mall is public, and the investor can often use the shopping mall sentiment on the basis of having a sufficient grasp of the company's fundamentals. Therefore, generally speaking, the risk of primary shopping malls is greater than that of secondary shopping malls, and the capital contribution requirements of investors into primary shopping malls are higher, and the liquidity is relatively poor.

Secondary shopping malls are generally divided into organized trading houses (such as Shenzhen ** trading houses, Shanghai ** trading exchanges, Beijing ** trading exchanges) and over-the-counter trading shopping malls.

Buying and selling on the ** exchange is on-exchange, and ** trading outside the ** exchange is off-exchange. Over-the-counter trading is mainly carried out on the platforms of various merchants, so it is also called over-the-counter (OTC).

In addition, there are some third and fourth shopping malls.

The third shopping mall is a shopping mall composed of non-exchange members who move the ** listed on the exchange to the over-the-counter trading, such as the bank trust department.

Fourth, shopping malls are generally large organizations or powerful individuals who completely avoid trading houses and brokers, and buyers and sellers buy and sell directly through telecommunications networks.

That's all there is to the question "What is a primary mall and a secondary mall?" "Knowledge.

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