Question

Distinguish between New Issue Market and Stock Exchange

Answer 1

New Issue Market	Stock Exchange
There is sale of securities by new companies or further (new issues of securities by existing companies to investors).	There is trading of existing shares only.
Securities are sold by the company to the investor directly (or through an intermediary).	Ownership of existing securities is exchanged between investors. The company is not involved at all.
The flow of funds is from savers to investors, i.e. the primary market directly promotes capital formation.	Enhances encashability (liquidity) of shares, i.e. the secondary market indirectly promotes capital formation.
Only buying of securities takes place in the primary market, securities cannot be sold there	Both the buying and the selling of securities can take place on the stock exchange.
Prices are determined and decided by the management of the company.	Prices are determined by demand and supply for tम ाँhe security.
There is no fixed geographical location.	Located at specified places.