medium · Debt Capital Markets secondary-trading-liquidity
What is the primary difference between 'Primary' and 'Secondary' debt capital markets?
- Primary market prices are determined by the SEC, while secondary market prices are determined by supply and demand.
- Secondary market transactions provide capital directly to the issuing company to fund acquisitions.
- The primary market is only for government bonds, while the secondary market is for corporate bonds.
- The primary market is where new bonds are created and sold to investors for the first time, whereas the secondary market is where existing bonds are traded among investors.
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