What is a primary market and a secondary market?

Primary Markets are where investors get hold of new securities in the Market. Suppose an investor invests in an IPO and then gets X number of securities issued, then those securites are said to be a primary market trade. Sales made in the Primary Market are forwarded to the company issuing an IPO.

When the securities are traded between investors after the initial IPO, they are set to be Secondary Market Trade. The Secondary Market trade is driven by the basic Supply and Demand phenomenon. When we invest in the day-to-day trading of the stock market, it is said to be a secondary market trade. Therefore Secondary Market is a market where investors buy stocks, equities, etc. from other investors rather than issuing companies.