n NISM Certifications
XXI NISM Series XXI-A
Medium

The primary difference between primary and secondary markets is:

Practice question from NISM XXI A for PMS - Mock Test 2 — bank. The correct answer is highlighted below with a full explanation.

Options

  1. Primary markets deal with new securities issuance, secondary markets involve trading existing securities

    Correct answer

  2. B

    Primary markets are for stocks, secondary markets are for bonds

  3. C

    Secondary markets only operate during specific hours

  4. D

    Primary markets are less regulated than secondary markets

Why this is the answer

Primary markets facilitate new issues; secondary markets are for trading existing securities.

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