Differences between Primary and Secondary market

Primary Market	Secondary Markets
Primary market is that type of securities market where first time issued (i.e. first hand) securities (Bonds, Common stocks, Preferred stocks etc.) are traded.	Secondary market is that type of securities market where already issued (i.e. second hand) securities (Bonds, Common stocks, Preferred stocks etc.) are traded.
Parties involved in the primary market are issuing company, investment banker and investors.	In secondary market stock sellers, brokers and stock buyers are involved in transaction.
The securities traded in primary market are totally new which had not been issued before.	The securities traded in secondary market are second hand in nature which were already issued to the public.
In primary market the company collect fund by issuing securities so as to expand its business operations or other financial needs.	In secondary market the company is not involved in transaction.

In Primary Market, the price of the securities is not affected by the demand and supply of the securities. They are traded on fixed price specially on par value.

The price of the securities, in Secondary Market, are determined by the demand supply relationship of the securities. The price of securities will be high as its demand increase over supply and vice-versa.