In this article, I will tell you what is the primary market in the stock market and what is the secondary market is the difference between the two. Today’s article is going to be very important for you. So let’s get started.

#1: What Is Primary And Secondary Market

• What Is PVT Limited Company 

• Public Limited Company

• Share Market Trading

Friends, if any person buys stock from the stock market, he buys stock from the secondary market. Friends, if you want to buy haire or dawlance, you cannot buy because these companies are not registered on Pakistan Stock Exchange and which company stock You can’t buy shares that aren’t listed on the exchange.

• What is a private limited company?

• What is a public limited company?

Now the reason why these companies are not listed on the stock exchange is that these companies are private limited companies and not public limited companies. Now let me tell you the difference between the two. Private limited companies are companies whose ownership, founder and management minutes belong to a particular group of investors. And such a company is not listed on the stock stage.

#2: Public Limited Company

A public limited company is a company whose shares are sold to the general public in the form of shares through IPO. And such companies are eligible to be listed on the stock exchange. So this is the basic difference between a private limited company and a public limited company. Let me give you an example

For example, a company has to expand its business. To grow its business, it has to issue an IPO and be listed on the stock exchange. People will give money to this company and that company will give shares to its investors. Remember you do not need any stock exchange account to buy IPU shares but you need these accounts.

• CDC SUB-ACCOUNT
• CDC INVESTOR ACCOUNT
• CDC IPO FACILITATION ACCOUNT

In which you can buy your shares and require a bank account. And that’s the whole process. You paid the company and the company gave you the shares and the whole process happened in the primary market. Nor do you need a stockbroker here and that is why we call it a primary market in which there is no Pakistan Stock Exchange and no broker is needed.

This involves dealing with a direct investor and the company. And if the IPU processor is gone and the same shares are listed on the stock exchange and are being bought and sold there, then we will say that the buying and selling of shares are taking place in the secondary market. Now the two investors are negotiating with each other and the broker has also joined it and the place where we will buy or sell the share on the stock stage has also joined it.

In the primary market, it is between Dell Company and the investor, but in the secondary market, it is between Dell Investor and the investor, including the broker. Now I will tell you about IPO in the primary market and how the lion executes in the primary market. I will tell you a little bit about the process. How does share trade end in the primary market?

#3: Share Trading In Stock Market

For example, a company comes and launches your share and its price is Rs. 30. And that company will also tell you the date on which you can buy its shares. When a company conducts IPL, for example, it has a date of 19th and 20th to buy a tiger, then 19th and 20th date in two days, if you bought the shares, it is fine, otherwise, you cannot share after that and they The two dates will be called Subscription Dates.

If these historic passes occur, you will now have to buy those shares from the secondary market instead of the primary market. When you pay the company for the shares, it will give you the shares again. Why is it that now that the date has passed, the company will decide how many shares we have to give to the investor as much as the amount paid? He will be given shares accordingly. And this work will take another four to five days.

#4: Stock Exchange

So the stock exchange was not included anywhere here so we would call it the process that has been executed in the primary market. So when they are listed on the stock exchange then you can buy and sell them and remember that if you want to sell these shares then you cannot sell the shares back to the company but you have to sell the shares to an investor. 

Now, as many trades as there will be, trading on stock exchanges and buying and selling of shares, we will tell him that all these trades are taking place in the secondary market. Whenever shares are bought and sold in the primary market, we will tell them that they are being bought and sold in the primary market because there is a deal between the investor and the company. And nowhere does it involve the stock exchange.

But in the secondary market, when the shares are traded, the broker and the stock exchange are also involved. So there is a difference between the secondary market and the primary market. If you like this article, you will find something good in this article. Please read all my articles. Will get the knowledge.

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