The Primary Market: Capital market where companies or governments directly issue securities (Debt-based or Equity-based) to raise funds, is called the Primary Market. In the primary market, the issuer sells securities at predetermined prices. The buyers in a Primary market can be Financial institutions, Corporates, Mutual Funds, and Individuals.

The Secondary Market: Capital market where securities are traded among investors. Trading can happen between Financial institutions, Individual investors, or both. The issuer doesn't participate in trading. The price of the securities in the Secondary Market is dependent on current demand and supply.