PRIMARY MARKET


The primary market it also known as the new issue market. It deal with new securities being issued for the first time. The
essential function of primary market is to facilitate the transfer of investable funds from savers the entrepreneurs seeking to establish new enterprises or two expand existing once through the issue of securities for the first time. The investor in this market are banks, financial institution, insurance companies, mutual fund and individuals.
A company can rise capital through the primary market in the form of equity shares, preference year, de venture, loan and deposit. Fund raised may be for setting up new project, expansion, diversification, modernization of adjective project, mergers and takeover etc.

METHODS OF FLOATATION : 
There are various methods of floating new issues in the primary market:

1. Offer through prospectus: offer true prospectus in the most popular method of raising funds by public companies in the primary market. This involves investing subscription from the public through issue of prospectus. A prospectus make a direct appear to investor to raise capital, through an advertisement in newspaper and magazine. The issues may be underwritten and also are required to be least all at latest one Stock Exchange. The contact of the prospectus have to be in accordance with the provisions of the Companies Act and SEBI disclosure and investor protection guideline.

2. Offer for Sale: under this method securities are not issued directly to the public but are offered for sale through intermediaries like issues ours or stockbroker. in this case, a company sales securities in Enbloc at an agreed price to broker who, in turn, resale them do the investing public.

3. Private placement: private placement is the allotment of securities by company to institutional investor and some selected individuals. It helped to raise capital more quickly than a public issue. Access two the primary market can be expensive on account of various mandatory and non mediatory expenses. Some companies, therefore, cannot afford a public issue and tool to use private placement.

4. Rights issue : this is a privilege given to existing shareholders to subscribe to a new issue of share according to the term and condition of the companies. The shareholder are offered the right to buy new share in proportion do the numbers of seer they already process.

5. e-IPOs : A company proposing to issue capital to the public through the one time system of the Stock Exchange has to enter into an agreement with a Stock Exchange. This is called an initial public offer (IPO).  SEBI registered broker have to be appointed for the purpose of accepting application and placing order with the company. The issuer company should also appoint a register to the issue having electronic connectivity with the exchange. The issuer company can apply for listing of this security on any exchange other than the acting through which it has offered its security. The lead manager coordinate all the activity amongst intermediaries connected with the issues.

 SECONDARY MARKET
the secondary market is also known as the stock market or Stock Exchange full stock it is a market for the purchase and sale of addicting securities. It helps existing investor to disinvest end press fresh investor to enter the market. It also provide liquidity and marketability to equity securities. It also contribute to economic growth by challenging fund toward the most productive investment through the process of disinvestment end reinvestment. Securities are traded, cleared and settled within the regulatory from work prescribed by SEBI. Advances in information technology have made trading through Stock Exchange accessibility from anywhere in the country through trading terminals. Along with the growth of the primary market in the country, the secondary market has also grow significance during the last ten year.